RM1 Billion Expansion Underscores Malaysia’s Strategic Role in the Global Semiconductor Value Chain
KEDAH, 22 April 2025 – Ferrotec Holdings Corporation marked a major milestone today with the groundbreaking of its second high-tech manufacturing facility at Kulim, Kedah, with an investment of RM1 billion (USD226 million). This reinforces its long-term commitment to Malaysia and its growing role in the global semiconductor industry. Set for completion within a year, the second facility will strengthen Ferrotec’s Southeast Asian footprint, enabling faster delivery, enhanced customer service, and greater innovation for global markets across Asia, Europe, and the Americas, bringing the company’s total Malaysian investment to RM1.9 billion.
The ceremony was graced by distinguished guests including Mr. Noor Ikhsan Bin Abdul Aziz (COO, Invest Kedah), Mr. Mohd Rushdan Mohd Ghazali (Director, MIDA Kedah), Ar. Haji Mohd Nazri Bin Harun (MPKK), Mr. Bao You Wei (President of Ferrotec HangZhou), Mr. He Xian Han (Group CEO & President, Ferrotec Holdings Corporation), Mr. Takeru Yamamura (CEO, Ferrotec Manufacturing Malaysia), and Mr. Anzhi He (Managing Director, Ferrotec Manufacturing Malaysia).
The new Kulim Factory #2 will span nearly 1 million square feet across 20 acres and feature over 700 CNC machines, smart production lines, IoT-enabled systems, and predictive maintenance capabilities – embodying Industry 4.0 principles. It is expected to create over 1,000 high-value jobs, enhancing Ferrotec’s precision manufacturing capacity for semiconductor components.
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, congratulated Ferrotec on this significant milestone, stating “Ferrotec’s continued expansion in Malaysia underscores the country’s position as a premier destination for high-tech investments in the semiconductor industry. This commitment not only reflects investor confidence in our policies, infrastructure, and talent—but also reinforces our ambition to become a regional leader in advanced manufacturing. MIDA is proud to support Ferrotec’s journey as it strengthens the global semiconductor value chain from the heart of Kedah. We look forward to even greater collaboration as Malaysia advances its New Industrial Master Plan 2030 and fosters innovation-driven, sustainable growth.”
“The groundbreaking of our second plant in Kulim is not only an important milestone in the history of Ferrotec, but also a true reflection of our deep cooperation on building the semiconductor industry chain. The success of our first facility has proven the validity of Ferrotec’s strategy of “rooting in Malaysia and serving the global market.” It has strengthened our confidence to deepen cooperation and expand investment, setting a benchmark for Ferrotec’s ventures in Malaysia. The strong support from the Malaysian government, Kedah state, and MIDA has given us the confidence to expand our presence here and further integrate into Malaysia’s vibrant semiconductor ecosystem. With our second facility, we aim to better serve our global customers with high-quality, innovative components and to contribute to the creation of a collaborative, resilient, and forward- looking semiconductor value chain in Malaysia and beyond.” said Mr. He Xian Han, Group CEO & President.
Speaking at the event, Mr. Anzhi He, MD of Ferrotec Manufacturing Malaysia, said: “Kulim Plant #2 is not merely an expansion – it is a statement of confidence in Malaysia’s thriving semiconductor ecosystem. This plant is not just bigger—it is smarter. Powered by Industry 4.0 technologies, it embodies Ferrotec’s vision for a modern factory where machines learn, adapt, and collaborate with human ingenuity.” He added, “Together with the support of MIDA, KTPC, and the Kedah State Government, we are not just building factories – we are shaping the future of AI and the fast-growing digital economy, powered by Malaysian talent and Ferrotec’s 45 years of engineering excellence.”
This expansion aligns with Malaysia’s New Industrial Master Plan 2030 (NIMP) and Kedah’s E10 initiative, both of which aim to position the country as a regional hub for advanced manufacturing and digital transformation. Ferrotec remains guided by its core values of Diligence, Aspiration, Exploration, and Innovation, driving sustainable growth and deeper collaboration in Malaysia and beyond.
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