FERROTEC OPENS SECOND KULIM PLANT, CREATING OVER 1,000 HIGH-VALUE JOBS FOR MALAYSIANS
New facility strengthens Malaysia’s semiconductor and advanced manufacturing ecosystem and deepens local supply chain ecosystem
KULIM, KEDAH, 5 November 2026 – Ferrotec Group has further strengthened its manufacturing footprint in Malaysia with the official opening of Ferrotec Manufacturing Malaysia’s Plant 2 in Padang Meha, Kulim, on 28 October 2026. This marks another significant milestone in the Group’s expansion in Southeast Asia and its continued commitment to Malaysia’s semiconductor and advanced manufacturing ecosystem. Malaysia remains an important part of Ferrotec’s Southeast Asian growth strategy, supported by growing semiconductor demand, Malaysia’s established semiconductor ecosystem and the performance of the Group’s existing operations in the country.
The grand opening ceremony was officiated by YAB Dato’ Seri Haji Muhammad Sanusi bin Md Nor, Menteri Besar of Kedah. He was joined by Mr. He Xian Han, President and Group CEO of Ferrotec Corporation, and Mr. Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia, together with members of the Kedah State Executive Council, state and local government officials, and senior representatives of Lam Research Corporation and Applied Materials, Inc.
Ferrotec’s first manufacturing facility in Kulim involved an initial investment of more than RM900 million and commenced operations in January 2024. The company subsequently committed a further RM1 billion to its expansion in Kulim, bringing the cumulative investment for the two Kulim plants to approximately RM1.9 billion. This latest expansion will generate over 1,000 new high-value jobs for skilled Malaysian professionals—including engineers, technicians, and production specialists, further building on the workforce established by the first facility.
YAB Dato’ Seri Haji Muhammad Sanusi bin Md Nor, Menteri Besar of Kedah, said, “Our ambition is not simply to bring more factories into Kedah. Our ambition is to build a stronger industrial ecosystem where leading global companies can grow, local businesses can develop alongside them, and our people can benefit from better employment and career opportunities. Ferrotec’s continued expansion is an excellent example of the kind of long-term partnership we hope to build.”
The opening of Plant 2 significantly expands Ferrotec’s Kulim footprint, adding nearly one million square feet of highly automated manufacturing space equipped for over 700 high-precision CNC machines, IoT sensors, and autonomous guided vehicles. Together with the existing facility’s established capabilities in quartz, advanced ceramics, precision metal fabrication, and electromechanical assembly for the semiconductor industry, Ferrotec’s Kulim operations now employ over 2,200 people with continued capacity for growth.
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), said, “Ferrotec’s decision to open a second plant in Kulim, in less than three years after its first plant began operations, reflects the Group’s confidence in Malaysia as a base for semiconductor equipment manufacturing. The project brings advanced capabilities in quartz, ceramics and precision metal components into the country and, with more than 1,000 additional high-value jobs, creates valuable opportunities for Malaysian engineers, technicians and local suppliers. This is in line with the New Industrial Master Plan 2030 and the National Semiconductor Strategy, which aims to move Malaysia further up the semiconductor value chain. MIDA will continue to work closely with Ferrotec as it ramps up Plant 2 and deepens its links with Malaysian companies.”
He Xian Han, President and Group CEO of Ferrotec Corporation, said, “Malaysia has a mature, well-established and dynamic semiconductor ecosystem. Its strong industrial foundation, comprehensive infrastructure and efficient government services provide favourable conditions for foreign investors to establish, operate and expand their manufacturing operations. These strengths reinforce our confidence in continuing to invest in Malaysia.”
Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia, said, “When we first evaluated locations in Southeast Asia, we looked at many factors. Today, I can confidently say that choosing Malaysia and Kulim was one of the best decisions we made. MIDA has been with us since our first conversations about Malaysia and continued to support us following our investment decision, connecting us with the relevant stakeholders and helping us address administrative matters when timing was critical.”
Plant 2 is targeting a capacity ramp-up in the first quarter of 2027 and full production by the second quarter. The facility reinforces Malaysia’s standing in the global semiconductor industry.
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, MIDA CEO
Group Photo:
Centre: YAB Dato’ Seri Haji Muhammad Sanusi bin Md Nor, Chief Minister of Kedah
1st right : Mr He Xian Han, President & Group CEO of Ferrotec Corporation
2nd right : Mr Takeru Yamamura, CEO of Ferrotec Corporation
3rd right : Mr Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia Sdn Bhd
4th right : Mr Peter Holland, Corporate Vice President, Supply Chain, Lam Research Corp
5th right : Mr Trent Vore, AGS Head of Sourcing, Applied Materials, Inc.
1st left : YB Dato’ Seri Haji Norizan bin Khazali, Kedah State Secretary
2nd left : YB Prof Dr. Haim Hilman bin Abdullah, Kedah State Executive Council Member
3rd left : YB Dato’ Ustazah Hajah Siti Ashah binti Haji Ghazali, Kedah State Executive Council Member & Member of the Kedah State Legislative Assembly (MLA) for Merbau Pulas
4th left: Yang Berusaha Encik Mohamad Rizal bin Mohamad Radzi, Kulim District Officer
5th left : Yang Berbahagia Dato’ Haji Elmi bin Yusoff, President of the Kulim Municipal Council
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About MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA partners with investors at every stage of their journey, supporting sustainable growth and long-term value creation for Malaysia. For more information, please visit www.mida.gov.my/ and follow MIDA on X, Instagram, Facebook, LinkedIn, TikTok and YouTube.
About Ferrotec
Founded in 1980, on a technology core of Ferrofluid magnetic liquid and Ferrofluidic® sealing products, Ferrotec Holdings Corporation (6890 TSE Standard) is a worldwide leader in the supply of materials, components, and precision system solutions for industrial businesses. Ferrotec is a diversified world-class industrial organization with a global presence in a broad array of technology driven end markets (semiconductors, automotive, biomedical applications, smart phones, LEDs and FPDs). More information about Ferrotec’s products can be found at:
https://www.ferrotec.com/
https://ferrotec.my/
For media enquiries, please contact:
MIDA
Puan Zakiah Sajidan
Director, Machinery and Metal Technology Division, MIDA
Tel: 0322676769 | Email: [email protected]
Ferrotec
Tan Ai Leng
HR Associate Director of Ferrotec Manufacturing Malaysia Sdn Bhd
Tel: 04-2024000 | Email: [email protected]
