Japan’s Denso embarks on RM160mil advanced semiconductor production in Malaysia
24 Feb 2021
KUALA LUMPUR: Denso Corp of Japan, through Denso Malaysia Sdn Bhd, will be expanding its production capacity in Selangor.
Denso, a leading global mobility systems and components supplier, said the RM160 million expansion had been approved by the Malaysian Investment Development Authority (Mida) and was scheduled to commence in April.
Denso Malaysia’s products range from air-conditioning systems, radiators, engine control units, airbag electronic control units, electric power steering and other products.
In a joint statement today, Mida and Denso said electronic controls had been increasingly adopted in various vehicle systems in recent years.
Mida chief exexutive officer Datuk Azman Mahmud said Denso’s decision to further expand their presence in Malaysia had proven that the country continues to be a competitive investment location for high-value operations amidst global headwinds.
“This is another testament to Mida’s efforts in attracting quality investment into Malaysia. We are honoured to be selected as the country outside Japan to produce the advanced products as a result of continuous research and development (R&D).
“Moreover, we acknowledge the operational expenditure of over RM20 million in the next five years would benefit the local business ecosystem, from insurance, legal, banking, information and communication technologies (ICT) as well as transportation industries,” he said.
Denso said Denso Malaysia would be venturing into the production of automotive semiconductors, ASIC named Exposed Package (Ex-PKG), which is superior and competitive in terms of high functionality, efficient high heat dissipation, miniaturisation and cost reduction.
The project is also in line with the National Automotive Policy (NAP) 2020 to develop critical components within next-generation vehicles, mobility technology and autonomous driving.
They said the investment would establish fully automated machine production lines with Denso-designed manufacturing equipment and unique processing techniques that emphasize on high efficiency and high quality.
In addition, the introduction of fully automated production lines will accelerate the moving toward Industry 4.0 technologies, such as IoT deployment, big data management and factory automation in Malaysia.