Texas Instruments to expand in Malaysia, RM14.6bil in potential investments

 

An artist’s impression of the new Texas Instruments factory in Kuala Lumpur. (Texas Instruments pic)

PETALING JAYA: Chipmaker Texas Instruments has announced plans to expand its manufacturing in Malaysia with two new assembly and test factories in Kuala Lumpur and Melaka, with potential investments of up to RM14.6 billion.

Construction for the new facility next to its existing assembly and test factory in Kuala Lumpur is expected to begin later this year, with production set to begin as early as 2025.

The expansion in Kuala Lumpur is estimated to bring in RM9.6 billion in potential investments and create about 1,300 additional jobs.

The construction of a new, six-level assembly and test factory next to its existing facility in Melaka holds a potential investment of RM5 billion and will create up to 500 jobs. The new facility is also expected to begin production in 2025.

Investment, trade and industry minister Tengku Zafrul Aziz said the government was encouraged by Texas Instruments’ continued confidence in the country’s investment ecosystem.

“Texas Instruments’ plans to expand its assembly and test operations reflect Malaysia’s clear positioning in the global semiconductor supply chain, while complementing our new investment policy and new industrial master plan’s focus on attracting hi-tech, high value investments to support our increasingly digitised global and domestic economies,” he said in a statement.

Tengku Zafrul said the expansion will not only bolster domestic value chains but also create “knowledge-based” and high-income employment opportunities for Malaysians.

Texas Instruments’ assembly and test manufacturing operations vice-president, Yogannaidu Sivanchalam, said the expansion was part of the company’s long-term strategy to expand its internal manufacturing capacity to support the increasing need for semiconductors as well as to provide greater assurance of supply.

“Texas Instruments is proud to have been operating in Malaysia for more than 50 years and our decision to expand our back-end manufacturing is a reflection of the talented and growing team in Malaysia that will be critical to the company’s future,” he said. - FMT