Texas Instruments to Expand Manufacturing Operations in Malaysia
Investments in assembly and test operations further extend the company’s cost advantage and provide greater control of supply chain
Melaka, Kuala Lumpur, 13th June 2023 – Texas Instruments Incorporated (TI) (Nasdaq: TXN), today announced plans to expand its internal manufacturing footprint in Malaysia with two new assembly and test factories in Kuala Lumpur and Melaka. Together, these new investments will support TI’s plan to bring 90% of its assembly and test operations internal by 2030 to have greater control of supply.
YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI) 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.
Datuk Wira Arham, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), reaffirmed MIDA’s commitment to facilitating TI’s expansion and fostering a collaborative ecosystem. He emphasized, “MIDA is fully dedicated to supporting TI’s expansion plans, which will not only bring significant investments but also enhanced analog and embedded processing manufacturing capabilities to the country. This partnership further solidifies Malaysia’s position as a leading hub in the region for semiconductor innovation.”
The announced expansion reflects the joint efforts of TI, the Malaysian government, especially MITI and MIDA to reinforce Malaysia’s standing in the semiconductor industry. These initiatives aim to drive economic growth, attract investments, and foster knowledge exchange, contributing to the country’s overall development.
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.”
Expanding in Kuala Lumpur
TI recently purchased the building next to its existing assembly and test factory in Kuala Lumpur that 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.
Construction underway in Melaka
TI 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.
Building the next era of assembly and test in Malaysia
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.
At both factories, environmentally responsible construction methods that emphasize an energy-efficient design will be used to meet one of the Leadership in Energy and Environmental Design (LEED) building rating system’s highest levels of structural efficiency and sustainability: LEED Gold. Advanced equipment in the factories will reduce waste, water and energy consumption per chip, further demonstrating TI’s commitment to responsible, sustainable manufacturing.
Investing in internal manufacturing
TI has a long history of globally owned, regionally diverse internal manufacturing operations. The company has 15 manufacturing sites worldwide, including wafer fabs, assembly and test factories, and bump and probe facilities.
With plans to manufacture more than 90% of its products internally by 2030, TI has the ability to provide customers with geopolitically dependable capacity for decades to come.
Learn more about TI’s growing footprint in Malaysia:
- For images and b-roll video, visit the TI media gallery
- To learn more about TI’s exciting manufacturing roadmap, visit TI.com/manufacturing
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 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. Our passion to create a better world by making electronics more affordable through semiconductors is alive today, as each generation of innovation builds upon the last to make our technology smaller, more efficient, more reliable and more affordable – making it possible for semiconductors to go into electronics everywhere. We think of this as Engineering Progress. It’s what we do and have been doing for decades. Learn more at TI.com.
Ms. Noor Suziyanti Saad
Director, Electrical and Electronics Division
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Tel.: +603-2267 3575
Director, Media Relations
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