Malaysia joins Ericsson's global 5G equipment manufacturing supply chain - MIDA | Malaysian Investment Development Authority
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Malaysia joins Ericsson’s global 5G equipment manufacturing supply chain

Malaysia joins Ericsson’s global 5G equipment manufacturing supply chain

04 Aug 2023

Global 5G leader Ericsson has increased its socioeconomic contribution to Malaysia by producing its state-of-the-art 5G radio equipment in Penang — the company’s first 5G manufacturing facility in Southeast Asia.

Ericsson has been in Malaysia since 1965 and is rolling out the 5G network for Malaysia, which has already been recognised globally for its performance. 

The production was inaugurated by caretaker Penang Chief Minister Chow Kon Yeow, Deputy Communications and Digital Minister Teo Nie Ching and Swedish ambassador to Malaysia Dr Joachim Bergstrom at the G Hotel Gurney here today.

The 5G radio equipment being produced in Malaysia includes Ericsson’s industry-leading lightweight and energy-efficient Massive MIMO antenna-integrated radios and is produced in Prai, in partnership with Flex, a global diversified manufacturer that operates across 30 countries. 

Ericsson Malaysia, Sri Lanka and Bangladesh president David Hägerbro said the production marked the latest in a broad range of initiatives to bring its global experiences, expertise and insights to Malaysia in support of the government’s ambition to be a digital leader.

“Malaysia is an important market for Ericsson and domestic manufacturing in Malaysia will contribute to the local economy through employment and the transfer of technical knowledge to the local workforce in areas such as manufacturing, product engineering and equipment testing,” Hägerbro added.

According to Hägerbro, Ericsson will continue to deliver a secure, affordable, world-class 5G network and customer experience for Malaysia.  

Meanwhile, Chow said the history of Ericsson’s presence in Malaysia dated back to 1965 when it signed an agreement with Jabatan Telekom Malaysia for the delivery of a crossbar switch. 

Since then, he said, the company had consistently played a vital role in shaping the country’s telecommunications landscape. 

“Fast forward to today, Penang is proud and excited to welcome the presence of this Swedish telecom giant in the state.

“In the first quarter of this year, Ericsson has established its inaugural global 5G equipment manufacturing hub in Southeast Asia, located in Penang. This momentous accomplishment is the result of Ericsson’s partnership with Flex, one of Penang’s strategic investors since 1990. 

“Being one of the world’s biggest providers of 5G networking equipment, Ericsson’s investment decision serves as an acknowledgement of the state’s skilled talent, well-developed infrastructure and resilient environment. The state takes immense pride in hosting such a reputable company,” he said. 

Chow said, standing on the brink of a technological transformation, buoyed by the fourth industrial revolution, the proliferation of 5G, IoT and other emerging technologies had definitely unleashed the potential in both industrial and consumer markets. 

He added that this megatrend had opened up tremendous opportunities for Penang. 

“As the Silicon Valley of the East, Penang is the economic powerhouse of the country due to our robust industrial ecosystem. This enables Penang to constantly serve as a partner of choice for global top-notch companies in both manufacturing and digital economy landscape.

“Not resting on our laurels, Penang constantly seizes the opportunities arising from global development in a timely manner and continuously source for ways to move up the value chain.”

He added that Penang’s proposition in the global value chain is no longer restricted to back-end activities.

“We are becoming an emerging hub for IC design, IoT solutions and R&D activities. 

“The manufacturing of Ericsson’s 5G equipment definitely strengthens the state’s robustness in the E&E ecosystem,” he said.

Source: NST