Published on May 26th, 2022 | by Daniel Sherman Fernandez0
Ferrotec Holdings Corporation to invest RM500 million in Malaysia
Ferrotec comes to Malaysia for the semiconductor technology sector.
Ferrotec Holdings Corporation has just made a firm commitment to invest RM500 million in Malaysia and they will be undertaking electromechanical assembly and advanced material fabrication for semiconductor equipment. As we get investment from technology companies like Foxconn, this paves the way for more high technology specialist companies to invest in Malaysia.
Let Indonesia and Thailand get the automotive factories as they have the population and labor to run the factories and we in Malaysia get the high-tech investments that fuel some of these automotive factories. Let Tesla work with Indonesia and Singapore, and Malaysia will supply the chips.
The planned factory is expected to kick-start its operation in 2023. With a total investment expected to exceed RM500 million and at a facility of more than 800,000 square feet, the project is anticipated to create approximately 250 high-value jobs for Malaysians.
As a tier 1 company supplying to MNCs in semiconductor industry, the company has committed to provide training to Malaysian employees at the factories in Japan and the United States.
“Ferrotec’s decision on choosing Malaysia as a destination of choice for its high-tech manufacturing facility speaks volumes of our talent readiness, strength and capability of our manufacturing and business ecosystems.
Indeed, Ferrotec’s presence in Malaysia will turbocharge our local talent development and strengthen our value proposition in the global supply chain,” said Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI).
He also stressed that Ferrotec’s investment will open up greater possibilities for other global companies in the industry to follow suit and invest in Malaysia. He added that this major investment is poised to realise Malaysia’s long-term aspiration of becoming a global manufacturing hub.
In 2021, the machinery and equipment (M&E) industry received 48 approved projects worth RM1.67 billion in investment from both foreign and domestic sources. These projects are expected to generate 2,500 employment opportunities, with about 56 percent of employees in the managerial, technical and engineering related skills.
The specialised M&E for specific industries sub-sector is the largest contributor of investment for 2021, with 16 projects totalling RM592 million approved.
“Ferrotec has seen increasing demand for our products and services in Asia. With this new production facility, we expect to provide expanded capacity, improve business continuity for critical activities, and most importantly, ensure that our customers do not experience disruptions to their supplies from us,” said Eiji Miyanaga, Chief Executive Officer of Ferrotec (USA) Corporation.
In case you were wondering, Ferrotec was founded in 1980, is a worldwide leader in the supply of materials, components, and precision system solutions for industrial businesses.
Ferrotec is a diversified world-class industrial organisation with a global presence in a broad array of technology driven end markets (semiconductors, automotive, biomedical applications, smart phones, LEDs and FPDs).