Broadcom Chooses Malaysia for New Global Distribution Warehouse

Adds 300 Jobs for Malaysians, Strong Boost to Logistics and E&E Industry

18 September 2017, Batu Kawan – “With the establishment of this new facility, Broadcom’s global inventory for products being manufactured in the US, Taiwan, South Korea, Thailand and Malaysia will be centrally stored right here before being distributed worldwide. This new facility is undeniably a welcome boost to Malaysia’s logistics industry. Given that 90% of its products will be exported via air freight, it would increase the usage of Malaysia’s airport facility with approximately 300 to 500 million units of products being shipped per week. In fact, Broadcom’s estimated future export revenue is more than RM60 billion once its principal hub is fully operational, making Broadcom the largest E&E exporter in Malaysia,” said YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry (MITI) during the Opening Ceremony of Broadcom Limited’s Global Distribution Warehouse at the Batu Kawan Industrial Park in Penang today.

“In addition to this Global Distribution Warehouse which is managed by its Principal Hub, I am excited to know that the company has plans to expand further with business spending of RM4.1 billion over the next 10 years such as global production planning, quality management, strategic procurement and logistics management. Broadcom’s Principal Hub will also support its global subsidiaries in undertaking R&D activities. This would further strengthen Malaysia’s E&E ecosystem and create vast business opportunities for companies in supporting industries. Broadcom has certainly played an active role in supporting the local supply chain, benefitting contract manufacturers,” added the MITI Minister.

The half-day event was attended by YAB Tuan Lim Guan Eng, Chief Minister of Penang; Datuk Phang Ah Tong, Deputy Chief Executive Officer of the Malaysian Investment Development Authority (MIDA); and Dato' BC Ooi, Senior Vice President, Global Operations, Broadcom Limited as well as other key management personnel of Broadcom Limited.

Over the last decade, Malaysia has achieved significant progress in the electrical & electronics (E&E) industry that resulted in the growth of new businesses and creation of jobs. In fact, the country is now the world’s 7th largest exporter of E&E products with a total export of RM287.7 billion last year. This industry has shown an upward trend in export for the past 3 years, contributing 36.6% of total exports and 44.6% to the total manufacturing exports in 2016.

In his speech, the Minister also highlighted that many established E&E MNCs have found a home in Malaysia, particularly in Penang. This is due, in no small measure, to the development and industrial plans introduced by the Federal Government since independence, especially after 1970. Since the early years, MIDA which celebrates its 50th anniversary this year, have made every effort to bring globally renowned corporations such as Intel, AMD, Osram and HP to Penang’s shores, and the agency continues to work with the relevant agencies to intensify efforts to ensure that all states in Malaysia, including Penang, continue to receive high levels of investments.

“With over 50 years of semiconductor manufacturing from the time of Charlie Sporck (National Semiconductor), Andy Grove (Intel) and Jerry Sanders (AMD) since the late 60’s, Malaysia has developed a strong base of talented workforce with expertise in areas such as manufacturing, R&D, software test development. I am pleased to note that about 8% or 1,250 of Broadcom’s total employees worldwide are in Malaysia. In fact, the total 1,250 job opportunities, which include senior management, engineers, planners, finance, customer services and logistics created thus far, have been 100% for Malaysians. The availability of talents has not been the only reason that compelled companies like Broadcom to make continuous expansion here. These companies have recognised that Malaysia also offers a comprehensive E&E ecosystem and many other cost-competitive benefits that cater to operations in advanced technological products for the regional and international markets,” said YB Dato’ Sri Mustapa.

With Malaysia embracing the rise of Industry 4.0, MITI and MIDA continues to promote investments such as Broadcom. “Being a diversified global semiconductor leader built on 50 years of innovation, collaboration and engineering excellence, Broadcom has the right mix of technology, innovation power and global footprint that Malaysia welcomes. We urge many other companies to emulate Broadcom in making progressive plans towards embracing future technologies,” he further added.


For further information, please contact:

Ms. Azlina Hamdan
Director, Electrical and Electronics Division, MIDA
Tel: 03 2267 3791 Fax: 03 2260 1641
Email: [email protected]

MIDA is the government's principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 23 overseas offices. This year as the organisation celebrates its 50th anniversary, MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era

Posted on : 18 September 2017
Last Updated : Thursday 9th July 2020