Texas Instruments announced that it has plans to expand its internal manufacturing footprint in Malaysia with two new assembly and test factories in Kuala Lumpur and Melaka.
These new investments are to support the company’s plan to bring 90% of its assembly and test operations internal by 2030 to have greater control of supply.
MITI Minister, Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz said “We are encouraged by Texas Instruments’ continued confidence in the Malaysian investment ecosystem. TI’s 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 digitized global and domestic economies. Further, TI’s expanded investment footprint in our country will not only bolster domestic value chains but also create knowledge-based, high-income employment opportunities for Malaysians.”
The timing of the expansion also aligns with Malaysia’s broader strategy of strengthening the semiconductor industry ecosystem and driving economic growth.
Yogannaidu Sivanchalam, Vice President, Assembly and Test Manufacturing Operations at TI said, “These investments are part of TI’s long-term strategy to expand our internal manufacturing capacity to support the increasing need for semiconductors and provide greater assurance of supply. TI 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 TI’s future.”
TI recently purchased the building next to its existing assembly and test factory in Kuala Lumpur which sits on 18 acres of land. With a potential investment of up to MYR 9.6 billion, the company plans to convert the building into an assembly and test factory with more than 1 million square feet of cleanroom space. Construction is expected to start later this year, with production to begin as early as 2025. The new factory will connect to the company’s existing factory and create nearly 1,300 additional local jobs at full build.
The company is also constructing a new, six-level assembly and test factory next to its existing Melaka assembly and test factory. The new factory will include more than 400,000 square feet of cleanroom space and will connect to TI’s existing factory. With a potential investment of up to MYR 5 billion, this new factory will support up to 500 local jobs at full build and is also expected to begin production as early as 2025.
At full production, TI’s new, state-of-the-art factories in Malaysia will feature advanced factory automation to assemble and test hundreds of millions of analog and embedded processing chips daily that will go into electronics everywhere – from renewable energy sources to electric vehicles.
