Texas Instruments Incorporated (TI) has announced its intention to expand its manufacturing presence in Malaysia with the establishment of two new assembly and test factories in Kuala Lumpur and Melaka.
This expansion aligns with TI’s strategy to internalise 90% of its assembly and test operations by 2030, enhancing supply chain control.
YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), expressed enthusiasm for TI’s investment in Malaysia, emphasising the country’s position in the global semiconductor supply chain.
He highlighted the alignment of TI’s expansion plans with Malaysia’s New Investment Policy and New Industrial Master Plan, which focus on attracting high-tech, high-value investments to drive digitization in the global and domestic economies.
The expanded investment by TI is expected to strengthen domestic value chains and create high-income employment opportunities.
The expansion also supports Malaysia’s broader objective of bolstering the semiconductor industry ecosystem and stimulating economic growth. Datuk Wira Arham MIDA, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), reiterated MIDA’s commitment to facilitating TI’s expansion and fostering a collaborative ecosystem.
This partnership solidifies Malaysia’s position as a prominent hub for semiconductor innovation in the region.
The joint efforts of TI, the Malaysian government, particularly MITI and MIDA, reflect the shared goal of reinforcing Malaysia’s standing in the semiconductor industry. These initiatives aim to drive economic growth, attract investments, and foster knowledge exchange, contributing to the country’s overall development.
Yogannaidu Sivanchalam, Vice President, Assembly and Test Manufacturing Operations at TI, highlighted the company’s long-term strategy to expand internal manufacturing capacity and ensure a reliable semiconductor supply.
The decision to expand back-end manufacturing in Malaysia reflects the expertise and growth potential of the local team, which is crucial to TI’s future success.
In Kuala Lumpur, TI has acquired a neighboring building to its existing assembly and test factory, with plans to convert it into an assembly and test facility spanning over one million square feet of cleanroom space.
The potential investment of up to RM9.6 billion will create around 1,300 additional local jobs. Construction is anticipated to commence later this year, with production expected to start in 2025.
Simultaneously, TI is constructing a new assembly and test factory in Melaka adjacent to its existing facility. The six-level factory will encompass more than 400,000 square feet of cleanroom space and support up to 500 local jobs at full capacity. Production at this facility is also slated to begin in 2025, with a potential investment of up to RM5 billion.
Both factories will adopt environmentally responsible construction practices, incorporating energy-efficient designs aligned with the Leadership in Energy and Environmental Design (LEED) building rating system’s highest standards.
The advanced automation and equipment in these factories will contribute to TI’s commitment to responsible, sustainable manufacturing by reducing waste, water, and energy consumption per chip.
TI’s expansion in Malaysia aligns with its global strategy of investing in internal manufacturing operations. With 15 manufacturing sites worldwide, the company aims to manufacture more than 90% of its products internally by 2030, ensuring geopolitical reliability for its customers.
