Samsung SDI Energy Malaysia Sdn. Bhd. marked a new milestone when it opened Phase Two EV battery cell manufacturing facility in Seremban.
The Korean semiconductor giant has invested a cumulative RM7 billion investment with Phase One RM1 billion and Phase Two: RM6 billion as it chose Malaysia as its first production location in Southeast Asia.
Since 1991, parent company Samsung SDI Co. Ltd. stamped its footprint in Malaysia, starting off with the manufacturing of Cathode Ray Tube (CRT) under Samsung Electron Devices (SEDM). SEDM later changed its name to Samsung SDIEM, embarking on Lithium-Ion Cell manufacturing in September 2011 until May 2022, when Samsung SDI Co. Ltd. (South Korea) invested a total of RM2.8 billion. In return, over RM2.5 billion of annual export was generated, creating 2,500 Malaysian workforce through Samsung SDIEM.
Officiating the launch of Phase 2, Prime Minister Datuk Seri Ismail Sabri said: “I take this opportunity to congratulate Samsung SDIEM on its success for the opening of its second factory and an increase in investment of RM7 billion. With the construction of this new factory, it will create 1,300 job opportunities”. I appreciate the role played by Samsung SDIEM in developing the industry based on green technology. This is in line with the goals of the country to achieve a zero-carbon nation as early as 2050 as stated in the 12th Malaysia Plan strategy”.
Commending the company’s expansion as having strategic impact on the regional front, Senior Minister and Minister of International Trade and Industry Dato’ Seri Mohamed Azmin Ali remarked “Samsung SDIEM’s expansion aligns with the National Automotive Policy 2020 (NAP 2020) which addresses growing trends within the industry, thereby positioning Malaysia as the regional leader in the manufacturing, engineering, technology and sustainable development of the automotive sector. The opening of this assembly facility in Negeri Sembilan will benefit more Malaysian talents, especially high-skilled engineers in terms of capacity building as the company expands their footprint in the ASEAN region.”
In his welcoming speech, President and CEO of Samsung SDI Co. Ltd. (South Korea) Mr. Yoon Ho Choi said, “All at Samsung SDI are working hard towards the goal to solidify our position as a Global Top Tier Company by 2030. If Samsung SDI is lucky enough to tap into our partners’ competitiveness in addition to the support by the Malaysian Government, we will be able to reach our goal much quicker than planned”.
Malaysia is the third largest automotive market in ASEAN, making the automotive industry a critical and burgeoning component of the country’s manufacturing sector. There are currently 28 manufacturing and assembly plants in Malaysia producing motor vehicles (passenger vehicles, commercial vehicles, motorcycles, and scooters); and a huge pool of manufacturers of automotive parts and components. The automotive ecosystem also encompasses research and design, product and process development, materials management, and after-sales services.