Tesla Inc is not setting up a manufacturing and assembly plant in Southeast Asia. Nevertheless, its presence in Malaysia will long be felt because it knocked down barriers in the automotive industry.

It is the first marque that was allowed into the country without the need for approved permits, or APs. The exemption Tesla obtained from the Ministry of Investment, Trade and Industry effectively broke bumiputra car traders’ monopoly of importing cars.

Secondly, there were long queues when Tesla opened its sales office here. Never before had there been such hype surrounding any of the domestic automotive companies.

And finally, Tesla’s move to cut prices to maintain its leading position in the electric vehicle (EV) segment has sparked a price war and made EVs more affordable.

Tesla has its own set of problems, which is why it is not investing in a regional plant. It has invested substantially in the building of a gigafactory in China. However, it is facing stiff competition from the other marques, especially BYD Auto Co Ltd, in the country.

To keep up market share, Tesla has been cutting prices and sparked a price war in China. That price war has spilled over into Malaysia. BYD is selling its cheapest models here for slightly more than RM100,000.

Given the intense EV landscape, it is easy to fathom why Tesla has decided to scrap production plans in the region. Nevertheless, even without establishing a plant, its impact will always be felt in the domestic market. Consumers now know for sure that the price war in the EV segment is here to stay — for a while, at least — until such time when the likes of Tesla and BYD can come to a resolution.

Source: The Edge Malaysia

Even without a plant, Tesla’s impact will be felt

Malaysia is calling on global investors, collaborators, experts, policymakers, industry leaders and stakeholders to work on progressive industrial policies to position the country as a green, regional manufacturing hub.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said global experts not only need to address the challenges of green industrialisation, but also unlock its vast potential for the benefit of every Malaysian and the planet.

In positioning Malaysia as a premier green investment destination by 2030, he said, the country is aiming for a 7.5-fold increase compared to previous levels.

“We will focus on both domestic direct investment and foreign direct investment.

“Sustainability goes beyond addressing climate issues and energy security, or even when we talk about just transitions today.

“At the heart of it is the need to develop resilience, a key lesson from the pandemic. For Malaysia, socio-economic resilience underscores our inclusive and holistic development as envisaged by the Madani Economy Framework,” he said in his speech at the National Consultation on Green Industrialisation in Malaysia: Integrated Policy Strategies for a Sustainable Future here today.

The two-day event is organised by the United Nations Trade and Development (Unctad) in collaboration with Khazanah Research Institute.

Tengku Zafrul said Malaysia’s current challenges, such as climate change, pollution, resource scarcity and geopolitical tensions demand rethinking and reshaping traditional industrialisation approaches.

“On the flip side, this rapid progress also presents us with new opportunities to innovate and lead in sustainable development. Although Malaysia produces only 0.37% of the world’s cumulative total greenhouse gases, developing countries like Malaysia are often held to environmental standards that developed nations can easily fulfil.

“The transition to net-zero emissions is projected to cost the nation over RM1.2 trillion, or around US$270 billion. So, this is a necessary investment as we strive to balance economic growth with environmental sustainability,” he said.

By leveraging seven key levers – energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, carbon capture utilisation and storage, and circular economy – Malaysia aims to mitigate climate change and drive sustainable economic growth, Tengku Zafrul said.

“We have set specific targets on socio-economic benefits in these areas, including an estimated RM80 billion contribution to gross domestic product and the creation of 350,000 high-skilled jobs by 2030.

“The recently launched Green Investment Strategy will leverage Malaysia’s existing strengths to secure investments and foster strategic partnerships to position Malaysia among the top 17 countries in the Global Competitiveness Index by 2030 and solidify our leadership in green industrialisation.”

Tengku Zafrul noted that Bank Negara Malaysia has mandated that at least 50% of new bank financing supports climate-supporting or energy-transitioning activities by 2026, including the greening of industrial parks.

He said the central bank is developing guidelines to align financial institutions’ strategies with Malaysia’s national climate goals, ensuring a robust financing framework for the greening of Malaysia’s industrial landscape.

“Miti is also looking into various initiatives to mobilise private capital towards advancing circular economies, climate mitigation, adaptation strategies, and sustainable mobility in our industry.

“While these policies represent significant progress, there is always room for enhancement, such as greater coordination and synergy among governmental agencies, industry stakeholders and civil society, strengthen the country’s research and development capabilities in green technologies, ensuring that workers and communities are adequately supported through robust training and retraining programmes and fostering better regional cooperation on greening the country’s industries and grids,” Tengku Zafrul said.

Source: The Sun

Global experts’ input needed for Malaysia’s green industrialisation: Tengku Zafrul

The industry for palm kernel shells (PKS) and wood pellets in the Asia Pacific region is projected to expand by 8.9 per cent and 8.6 per cent, respectively, from 2024 to 2026, according to Public Investment Bank Bhd.

The firm noted that Elridge Energy Holdings Bhd stands to benefit from industry growth due to rising exports, government renewable energy initiatives, and increasing demand from end-user industries.

Additionally, Malaysia’s status as a major oil palm producer with ample forest resources supports the availability of raw materials.

PublicInvest also noted that Elridge Energy’s growth will be fuelled by increasing its production capacity through the establishment of three new factories.

The company plans to build factories in Pasir Gudang and Lahad Datu, each equipped with two palm kernel shell (PKS) production lines, each with an annual capacity of 240,000 metric tonnes (MT), and situated near ports. 

Additionally, Elridge will construct a similar facility in Kuantan and may set up a temporary factory while the permanent one is under construction.

According to PublicInvest, these new locations are expected to commence operations in the fourth quarter of the financial year 2024 (4QFY24) for Pasir Gudang and Kuantan, and in the second quarter of the financial year 2025 (2QFY25) for Lahad Datu.

The aim is to lower transportation costs and reduce dependence on Port Klang.

The firm also noted that Elridge Energy’s competitive strengths are highlighted by several key factors.

“The company benefits from the strategic location of its well-equipped Port Klang factory. It ensures compliance with the requirements of both local and international customers,” it said.

PublicInvest said that Elridge Energy’s products are adaptable, catering to a range of end-user industries.

“Elride Energy offers two types of biomass fuel products, namely PKS as well as wood pellets. Both are suitable for heat and electricity generation in manufacturing industries and biomass power plants, respectively. The diverse applications of these products should increase demand and provide the company with opportunities to expand its customer base,” it added.

The firm has a fair value of 46 sen for Elridge Energy.

“The group’s earnings growth largely hinges on the speed at which its new PKS production line becomes operational and the growth in demand from end-user industries, which is influenced by government renewable energy initiatives,” it adds.

Source: NST

Elridge Energy to gain from palm kernel shells, wood pellets industry growth: PublicInvest

MEP Enviro Technology Sdn Bhd has set another benchmark with the opening of its RM100mil recovery plant at Bukit Minyak Industrial Park in Simpang Ampat, Penang.

The investment underscores the total waste management firm’s commitment in enhancing its capabilities and ensuring the highest standards in waste management and recovery processes.

Spread across about 2ha to cater for production, warehouse, research and development and quality assurance activities, the expansion will enable MEP to tap into the region’s growth opportunities while connecting with existing and potential customers.

Established in 2005, MEP has a presence in Singapore, Thailand and Hong Kong, and soon Vietnam and the Philippines. It employs over 500 people.

According to director Sean Ong, its monthly capacity for processing scheduled wastes is 18,000MT, covering 18 waste codes of scheduled waste, hazardous waste, ferrous and non-ferrous metal and plastic recycling.

“We specialise in managing IP waste and refining electronic waste to recover precious metals, transforming them into gold, silver, platinum and palladium ingots,” he said.

“Our commitment to sustainability and adherence to environmental, social and governance principles are at the core of everything we do.

“We believe our efforts not only contribute to a healthier planet but also set new standards for environmental responsibility in the industry.

“Today’s grand opening is not just a celebration of our new facilities but also a testament to the hard work and dedication of our entire team.”

Raja Muda of Perak Raja Ja’afar Raja Muda Musa opened the plant.

The event also saw the inking of collaborations by MEP with Tanaka Kikinzoku Kogyo and Universiti Teknikal Malaysia Melaka (UTeM).

MEP was represented by director Datuk Ivan Ong, Tanaka by Akihiko Domae (corporate office president of chemical and refining company) and UTeM by Prof Dr Hambali Arep (Faculty of Industrial and Manufacturing Technology and Engineering dean).

A leading company in the field of precious metal recovery, Tanaka will transfer its technologies and expertise in refining precious metal waste, promising advancements in the region’s waste management and precious metal recovery capabilities.

The memorandum of understanding with UTeM focused on ewaste recycling management and will cover critical areas such as the study of ewaste trade and residue management.

Also present were state local government chairman Jason H’ng Mooi Lye, Bukit Tengah assemblyman Gooi Hsiao Leung and consulate-general of Thailand in Penang Datuk Raschada Jiwalai.

H’ng said MEP’s focus on electronic waste and innovative refining processes was a significant step towards a zero-landfill future while the new recovery plant would help in creating job opportunities.

Last month, Ivan received a Darjah Setia Pangkuan Negeri (DSPN), which carries the title of Datuk, in conjunction with Penang Yang di-Pertua Negri Tun Ahmad Fuzi Abdul Razak’s 75th birthday celebration.

He said the honour was a recognition of his personal efforts and an acknowledgement of his MEP team’s hard work.

Source: The Star

New RM100mil plant in Bukit Minyak charts milestone in total waste management

South Korea-based Lotte Energy Materials Corp is planning for an initial additional investment of RM1.2bil to further expand its elecfoil manufacturing facilities in Samajaya Free Industrial Park here in Sarawak.

Lotte Energy is a leading provider of advanced battery material.

The Samajaya plant is the group’s first overseas factory to manufacture elecfoil, which is widely used in electric vehicles (EVs) and energy storage items.

According to Lotte Energy senior vice-president Park Ingoo, there is a possibility for Lotte Energy to put in an additional re-investment of RM2.5bil for the plant, which was acquired from ILIN Materials Co Ltd about five years ago.

He was speaking at a briefing for Sarawak deputy-premier Datuk Amar Awang Tengah Ali Hasan on Lotte Energy’s future expansion plans in Sarawak.

Awang Tengah, who is also the state’s International Trade, Industry and Investment Minister, was leading a delegation on a working visit to meet up with existing and potential South Korean investors in Seoul recently.

Despite the global economic uncertainties, Lotte Energy plans to expand its manufacturing plant to make Sarawak the key hub to produce cutting-edge battery materials, said the state’s Trade, Industry and Investment Ministry in a statement.

“The expansion of the manufacturing facility is expected to generate more than 200 jobs which will foster industrial growth and contribute to the local economy,” Park noted.

Meanwhile, another South Korean energy and chemical company, OCI Holdings, has reaffirmed its commitment to Awang Tengah during the meeting with the company’s top executives to expand its manufacturing facilities in Samalaju Industrial Park, Bintulu, with a potential reinvestment of RM3.1bil.

OCI specialises in the production of polycrystalline silicon, hydrogen peroxide and other chemical-related materials.

In 2017,OCI via subsidiary OCI Malaysia Sdn Bhd (OCIM), acquired full ownership of the polysilicon production facility from Japan’s Tokuyama.

To date, OCIM has invested over RM8bil in Sarawak, catering for the solar industry’s polysilicon needs.

OCI’s growth plans include diversifying and expanding its chemical materials production in Sarawak.

This includes joint ventures with South Korea’s Kumho, one of the world’s largest tire manufacturers and Tokuyama to produce epichlorohydrin and semiconductor-grade polysilicon respectively, with combined investments exceeding RM3.2bil.

OCI chairman Lee Woo Hyun has expressed the company’s keen interest in exploring further investments in power development, particularly in renewable energy (RE) via its subsidiary OCI Energy.

With a robust global presence, OCI is a major player in RE and energy storage systems.

Currently, OCI Energy is the largest independent solar developer in Texas, United States.

Awang Tengah, in welcoming Lee’s proposals, highlighted Sarawak government’s commitment to make Sarawak a leader in green energy.

“This collaboration in green power development is poised to enhance Sarawak’s energy security while promoting sustainable economic growth and environmental stewardship,” he added.

During the working trip, Awang Tengah also met with top executives of KH Shinhwa SnC, which is interested in further exploring collaborative business and investment opportunities with state-owned Sarawak Energy Bhd (SEB).

This in particular for the electricity safety enhancement projects, including investment in new technology and solutions for power generation.

KH Shinhwa, a solution provider and consultant for smart energy, smart cities and smart farms, is currently collaborating with SEB on a hybrid microgrid solar solution project worth about US$7mil in investment.

The outcome of the project is expected to provide alternative sustainable energy solutions and set a new benchmark in RE technology.

Source: The Star

South Korean companies eager to invest in Sarawak

The development of Malaysia’s electric vehicle (EV) ecosystem requires the participation of global players such as Tesla Inc, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said his ministry, Miti, had a “systematic and strategic” approach to attracting investments in the automotive industry, which is not limited to just Tesla.

In the first phase, Miti’s goal is to facilitate EV car imports to ensure the domestic market quickly achieve a critical mass, whereby it will lead to at least 10,000 charging stations for public use, as well as high EV usage in the Malaysian market.

“After achieving this critical mass, we will hopefully be able to attract EV producers to develop assemby or manufacturing plants in Malaysia,” the minister said when contacted by Bernama on this issue.

Zafrul said that when global EV producers develop assembly or manufacturing facilities in the country under the second phase, it will also drive local automotive small and medium enterprises (SMEs) to boost their respective capacity to support the global EV producers’ supply chain by supplying spare parts, components and factory automation systems.

“We have an advantage, given that our semiconductor sector has been well established for more than 50 years — and EVs certainly use a lot of semiconductors,” he said.

The minister also stressed that Tesla, as a participant in the Global Battery Electric Vehicle (BEV) Initiative, definitely supports the development of the EV ecosystem in Malaysia from various aspects, despite not having made any commitment to opening a factory here. 

Zafrul pointed out that to date, Tesla had developed four experience centres in Malaysia.

Further, Tesla has reportedly surpassed the target of installing 50 charging units by setting up 52 ultra-fast chargers, with a capacity of more than 180 kilowatts each, at various sites in the Klang Valley, Johor, Melaka, Penang and Pahang.

In addition, the minister said, the Global BEV Initiative also requires at least 80% of the Tesla workforce to be Malaysians, and this condition was met.

Another condition that Tesla has fulfilled is partnership with at least 10 local SMEs in developing the country’s EV ecosystem, according to Zafrul.

“It has also partnered with five Malaysian banking groups, and two local insurance firms, in offering financing packages for Tesla car purchases.

“Tesla is also collaborating with local logistics companies to handle various EV-related transactions,” the minister said.

All this, he said, demonstrates Tesla’s seriousness in continuing its investment in Malaysia.

Zafrul also noted that only Tesla had applied and been approved for participation in the Global BEV Initiative so far.

Source: Bernama

Global players like Tesla needed for development of Malaysia’s EV ecosystem, says Zafrul

The country’s clear economic policies and political stability were key factors that prompted global semiconductor company Infineon Technologies AG (Infineon) to announce an additional investment of RM30.1 billion yesterday, said Prime Minister Datuk Seri Anwar Ibrahim.

He added that the nation’s energy transition and digitalisation, as well as the New Industrial Master Plan 2030 (NIMP 2030) also played a role in the company’s decision.

The RM30.1 billion investment will fund Phase 2 of Infineon’s 200-millimeter silicon carbide (SiC) power semiconductor fabrication facility in Kulim, Kedah, which is also the world’s largest.

Speaking at the launch of the Guidelines on the Management and Governance of Federal Statutory Bodies today, Anwar said the investment is set to create 4,000 jobs, including in fields such as artificial intelligence (AI) engineering and the semiconductor sector.

To this end, the Prime Minister emphasised the need for universities to ensure a sufficient supply of skilled talent.

“Universities need to be mobilised towards this goal because there is a shortage of engineers and we lack the skills in advanced digital fields and AI. These are areas we need to address,“ he said.

At the same time, Malaysia should also compare its performance with those of its regional peers to enhance business facilitation and competitiveness, said Anwar, noting that the country is still lagging in certain areas such as investment approvals.

He added that investors frequently express concerns about the approval processes, noting that countries like Vietnam currently outperform Malaysia in this area.

On another note, the Prime Minister highlighted that according to advanced estimates by the Department of Statistics Malaysia, the country’s economy is projected to grow by 5.8 per cent in the second quarter of 2024 (2Q 2024), the highest growth rate in Asia.

The economy grew by 4.2 per cent in 1Q 2024, up from 2.9 per cent in the previous quarter, driven by increased household consumption and a recovery in exports due to higher external demand.

Bank Negara Malaysia is expected to announce 2Q 2024’s economic figures next Friday.

Source: Bernama

Infineon’s additional investment reflects confidence in national policies – PM Anwar

Prime Minister Datuk Seri Anwar Ibrahim said the electrical and electronics (E&E) sector will be a vital pillar in improving Kedahans’ quality of life.

The E&E industry has been crucial in diversifying the state’s economy and generating employment opportunities.

“The government hopes this industry will become one of the pillars in lifting the quality of life in Kedah,” he said in a statement after an engagement session with E&E industry players at SilTerra Malaysia Sdn Bhd at the Kulim Hi-Tech Park here today.

The session was part of the Finance Ministry’s nationwide tour to gather feedback for the 2025 Budget.

Present were Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor and Kedah State Secretary Datuk Seri Norizan Khazali.

Anwar, who is also finance minister, said the Kulim Hi-Tech Park had become a focal point for the E&E industry, one of the engines of economic growth.

“The government aims to elevate Kedah’s E&E industry within the global value chain by enhancing added value and research and development.”

Earlier today, Anwar opened the first phase of Infineon Technologies AG’s power fabrication plant, which is poised to become the world’s largest and most competitive 200mm silicon carbide power semiconductor plant.

Source: NST

E&E sector to improve quality of life for Kedah people, says PM

Malaysia has emerged as the top investment destination for German electrical and electronics (E&E) industry players.

Prime Minister Datuk Seri Anwar Ibrahim said the country’s strong ecosystem for the industry has positioned it as a global hub for the front-end of E&E sectors.

“In this region, Germany has virtually chosen Malaysia as its priority over other countries.

“This advantage is not just due to the prime minister, it stems from an ecosystem that has been in place since the 1980s in Malaysia,” he said during his keynote address at an engagement session with E&E industry stakeholders here.

Anwar said, despite differing political views between Malaysia and Germany on international conflicts, German Chancellor Olaf Scholz has firmly supported the significant investment by German E&E giant Infineon Technologies in Kulim.

“When I met Chancellor Olaf Scholz, the issue that was raised was my differing stance on Gaza. However, he strongly supports Infineon’s substantial investment here.

“Even though he joked with me, saying Infineon should expand its facilities in Germany, he assured me that his government fully encourages and supports this investment,” he added.

Earlier, Anwar opened the first phase of Infineon Technologies AG’s new power fabrication plant in Malaysia, which is set to become the world’s largest and most competitive 200mm silicon carbide (SiC) power semiconductor plant.

Infineon chief executive officer Jochen Hanebeck said the first phase of the Kulim 3 plant, located in the Kulim High-Tech Park (KHTP), is part of a €5 billion (RM25 billion) investment plan over the next five years, following the announcement of a second phase of its module three construction last year.

Source: NST

Anwar: M’sia is leading investment hub for German electronics, electrical firms

Datuk Seri Anwar Ibrahim has reminded government agencies and learning institutions to do away with the culture of complacency to retain Malaysia’s advantage as a prominent hub for the semiconductor sector.

The prime minister pressed on the importance of building Malaysia’s resilience by enhancing the existing ecosystem comprising government efficiency, sound infrastructure and an education system to continue drawing high value investment in the electrical and electronic (E&E) sector.

“Malaysia is now regarded as the hub in the region for its ecosystem. We (are able to) compete with our neighbours because we have the edge for the last two to three decades as the ecosystem helps.

“However, it needs to be improved. I always emphasise the need for (building) resilience.

“The culture of complacency, the culture of contentment will not lead us anywhere.

“Of course I am delighted (by the current achievement), thank you again, but that is not sufficient,” Anwar said in his speech at the opening of Infineon Technologies AG’s world’s largest 200mm silicon carbide (SiC) power semiconductor fabrication plant in Kulim Hi-Tech Park (KHTP) today.

Present were International Trade and Industry Minister Senator Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Menteri Besar Datuk Seri Muhammad Sanusi Md Nor and

Infineon chief executive officer Jochen Hanebeck.

The German global semiconductor giant is investing RM34 billion to develop two phases of Infineon’s Kulim 3 plant over a span of 10 years.

Anwar stressed the importance of government agencies and training institutions reciprocating investors’ confidence in the country.

“This is a remarkable feat, thanks to all the players for playing their part. This shows Malaysia has now moved up the ladder, and we need to be prepared.

“But my concern is that we must not sit on our laurels… we are pushing forward and to push that agenda means all agencies, all departments, all levels of professionalism must step up.

“I believe my colleague (Tengku Zafrul) and the menteri besar (Sanusi) also share a similar sentiment that we cannot expect to be regarded as a successful player in this new technology if we continue to work at a normal pace.

“The infrastructure must be great. This includes KHTP, state government and federal agencies.

“We should not and cannot tolerate inefficiency or any delay because when companies like Infineon show interest in investing, we must reciprocate with clear commitment,” he said.

Anwar also reminded local universities and technical training institutions to be receptive and undertake changes at a faster pace.

“The learning and TVET (technical and vocational education and training) institutions in Kedah and Penang must be receptive and undertake changes at a faster pace.

“You can’t talk about digitalisation, innovation, AI (artificial intelligence) and expect to obtain good results at a normal pace of change or development,” he said.

Anwar said learning institutions must find ways to expedite the process to amend and introduce new programmes that are aligned to the current industry demand.

“As you lose that pace, you do not stand a chance in a post-normal world which require changes that are spontaneous at an unprecedented pace. Once you slow down, you lose the race.

“Therefore, setting up of, for instance, an AI department or faculty, or a new university, will require us to employ the best from the country and from the region or from the international community who can serve and contribute,” he said.

Source: NST

Anwar: Enhance ecosystem to retain Malaysia’s position as semiconductor hub

Prime Minister Datuk Seri Anwar Ibrahim today held a Budget 2025 engagement with electrical and electronics (E&E) industry players at the SilTerra Malaysia plant to get feedback from the industry and stakeholders.

The feedback received in the closed dialogue is expected to cover policies, incentives, programmes, as well as implementation and challenges before they are brought back to be studied at the Finance Ministry for adoption in the Madani Budget 2025.

Over 70 E&E industry players from 52 companies based in Kedah, Penang, and Perak attended the engagement session with Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Kedah Chief Minister Datuk Seri Muhammad Sanusi Md Nor.

Previously, Communications Minister Fahmi Fadzil said Anwar, who is also the Finance Minister, had instructed all ministers to hold a Madani Budget 2025 dialogue session with their respective ministries and all stakeholders in the sectors involved.

Budget 2025, which is the third budget under the Unity Government, will be presented on October 18 in Dewan Rakyat.

Earlier, the Prime Minister insisted that Budget 2025 will continue to focus on benchmarking aspects targeted within the framework of the Madani Economy including enabling Malaysia to become a major economy in Southeast Asia.

Source: Bernama

Budget 2025: PM holds engagement with northern electrical, electronics industry players

Enovix Corporation, a global leader in high-performance battery technology, held the grand opening of its first high-volume manufacturing facility (Fab2) in Penang today.

The state-of-the-art facility has commenced production of high-energy density batteries and is currently hosting visits from leading global customers. US-based Enovix plans to invest a total of US$1.2 billion (RM5.8 billion) in Malaysia over the next 15 years.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said, “Enovix’s Fab2 is a huge step for Malaysia in the global supply chain for advanced battery technologies, highlighting our country’s conducive investment landscape. It also fulfils our objective to attract the right high-tech industries to enhance the nation’s economic complexity, as outlined in the New Industrial Master Plan 2030 (NIMP 2030). We welcome this new facility, which is a significant milestone for Enovix, and strongly supports our NIMP’s goals by fostering innovation, creating high-value jobs, and driving sustainable growth, while increasingly positioning Malaysia as a global hub for cutting-edge technology.”

Penang Deputy Chief Minister II Jagdeep Singh Deo stated, “Today’s opening ceremony for the establishment of Enovix’s first high-volume manufacturing facility in Malaysia signifies the beginning of an exciting chapter for the company. The state is honoured to be selected to house this esteemed facility which will definitely bring positive technological and economic spillovers for not only Penang, but the northern region of Malaysia.”

Malaysian Investment Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul said Enovix’s significant investment in Malaysia will create jobs and enhance workforce’s technological capabilities.

Enovix chief operating officer Datuk Ajay Marathe said, “We are thrilled to open our doors at Fab2 and showcase our advanced manufacturing process of a cutting-edge batteries that we believe will usher in a new era of products for leading customers. We have been able to draw upon Malaysia’s deep pool of technical talent and are appreciative of the country’s business-friendly climate and close proximity to our customers and vendors.”

Enovix, headquartered in the United States, has production operations in India, South Korea and Malaysia. Enovix’s innovative battery technology is utilised across a diverse range of application, including Internet of Things, mobile phones, computing devices and vehicles.

Source: The Sun

US-based Enovix inaugurates high-volume manufacturing facility Penang

Recognising the rapid growth of power semiconductors driven by decarbonisation, particularly those based on wide bandgap materials, Germany’s Infineon Technologies AG, a leader in power systems and Internet of Things, is taking a significant step to shape the industry by expanding its Kulim 3 fabrication facility on top of the investment announced in February 2022.

Infineon will invest an additional €5 billion (RM24.5 billion) for Phase 2 of the facility in Kulim High Tech Park, Kedah, on top of the original €2 billion for Phase 1, to construct the world’s largest 200mm silicon carbide (SiC) power fabrication plant.

Prime Minister Datuk Seri Anwar Ibrahim today opened the first phase of Infineon’s new power fabrication plant in the high tech park.

Phase 1 and Phase 2 will generate 900 and 600 high-value jobs in Malaysia, respectively. In total, 4,000 jobs will be created. The Kulim 3 fab building incorporates advanced energy efficiency and sustainable practices.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz applauded Infineon’s decision to expand its presence in Malaysia stating, “Infineon’s world’s largest 200mm SiC power fab being constructed in Malaysia highlights our nation’s growing credibility as a regional hub for cutting-edge technology and innovation in the semiconductor space.

“We warmly welcome long-term, committed partners like Infineon to, among others, enhance our economic complexity and push for net zero, as laid out in the New Industrial Master Plan 2030.”

He added that Infineon’s additional RM24.5 billion investment in cutting-edge manufacturing technologies will not only drive innovation and Malaysia’s industrial reform agenda, but also create 1,500 high-skilled job opportunities for Malaysians.

“A robust industrial talent pipeline, ESG considerations and ecosystem development are key, and this is where our National Semiconductor Strategy will play its role towards attracting more high-quality investments that will drive Malaysia’s industrial reforms and sustainable growth,” said Tengku Zafrul.

Malaysian Investment Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul Majid, who attended the event, remarked, “Infineon’s expansion significantly strengthens Malaysia’s position in the global semiconductor supply chain. As decarbon-isation gains pace, this investment highlights the government’s dedication to green technologies and sustainable development, in line with the Green Investment Strategy.”

He said Infineon has been a key partner in these efforts, and its growth in Kulim is a major step for sustainable socio economic progress.

Infineon Technologies CEO Jochen Hanebeck said, “We have a clear vision at Infineon – driving decarbonisation and digitalisation.

“Together. Infineon Kulim plays a significant role in fulfilling this vision. When the second phase of the Kulim expansion is completed, this will be the largest and most competitive 200-millimeter silicon carbide power semiconductor fab in the world.”

“Today’s event is proof that we are not alone in our efforts to achieve a climate-neutral future. We have a strong network of customers, suppliers and partners that are working towards one common goal. We want to use innovative solutions to ensure that our planet remains a place worth living on.”

Malaysia assumes a pivotal role in the global semiconductor supply chain. In 2023, the electrical and electronics (E&E) industry secured RM85.4 billion in approved investments. E&E is the major contributor to the country’s gross domestic product growth, and is the sixth largest semiconductor exporter with a 7.5% global market share, as well as 13% of the global share for chip assembly.

Source: The Sun

Kulim will be home to world’s biggest 200mm SiC power fab plant

Prime Minister Datuk Seri Anwar Ibrahim today opened the first phase of Infineon Technologies AG’s new power fabrication plant in Malaysia, which is set to become the world’s largest and most competitive 200-millimeter silicon carbide (SiC) power semiconductor plant.

Its chief exec officer Jochen Hanebeck said the first phase of its Kulim 3 plant in the Kulim High-Tech Park (KHTP), is part of the total five billion Euros (RM25 billion) investment in the next five years here in a second phase of its construction of module three, which was announced last year. 

The first phase of the fabrication plant, with an investment value of two billion euros (RM9.8 billion), will focus on the production of SiC power semiconductors and will include gallium nitride (GaN) epitaxy.

“SiC semiconductors increase efficiency in electric vehicles, fast charging stations, and trains as well as renewable energy systems and Al data centres. 

“Nine hundred high-value jobs are already created in the first phasem” he added.

The second phase, with an investment of up to five billion euros, will create the world’s largest and most efficient 200-millimeter SiC power fabrication plant. Overall, up to 4,000 jobs will be created by the project.

“Our technology increases the energy efficiency of ubiquitous applications such as electric cars, solar and wind power systems, and Al data centres. We are therefore investing in the largest and most efficient high-tech SiC production facility in Malaysia, backed by strong customer commitments,” he said.

Hanebeck said the demand for semiconductors will constantly rise, and the investment in Kulim is highly attractive to Infineon’s customers, who back the company with their prepayments, increasing the resilience of the supply chain for critical components needed for the green transition.

Infineon started its operations in Malaysia in Melaka in 1973 and in 2006, the company opened Asia’s first front end fabrication plant in Kulim. 

Currently, Infineon employs more than 16,000 highly skilled people in Malaysia.

Source: NST

PM opens first phase of Infineon’s world’s largest 200-mm SiC power semiconductor plant

United States-based Enovix Corporation, which today inaugurated its first high-volume battery manufacturing facility (Fab2) in Malaysia, plans to invest a total of US$1.2 billion (RM5.8 billion) in the country over the next 15 years.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the state-of-the-art facility is a huge step for Malaysia in the global supply chain for advanced battery technologies, highlighting the country’s conducive investment landscape.

“It also fulfils our objective to attract the right high-tech industries to enhance the nation’s economic complexity, as outlined in the New Industrial Master Plan (NIMP) 2030.

“We welcome this new facility, which is a significant milestone for Enovix, and strongly supports our NIMP’s goals by fostering innovation, creating high-value jobs, and driving sustainable growth, while increasingly positioning Malaysia a global hub for cutting-edge technology,” he said in a statement issued jointly by the Malaysian Investment Development Authority (Mida), Invest-in-Penang Bhd and Enovix today.

Penang Deputy Chief Minister II Jagdeep Singh Deo said the state is honoured to be selected to house this facility which will bring positive technological and economic spillovers for not only Penang but the peninsula’s northern region.

“Today’s opening ceremony for the establishment of Enovix’s first high-volume manufacturing facility in Malaysia signifies the beginning of an exciting chapter for the company,” he said.

Mida chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said that Enovix’s significant investment in Malaysia will create jobs and enhance the workforce’s technological capabilities.

“Mida is proud to support Enovix in its mission to revolutionise battery technology, and we believe that its cutting-edge expertise will have a multiplier effect on our local ecosystem.

“As a partner, we’re committed to providing Enovix with the support and facilitation it needs to succeed, and we’re confident that its presence will have a positive impact on the nation’s economy and rakyat. We’re looking forward to working closely with Enovix to achieve its goals and make a difference in the industry,” he added.

Meanwhile, Enovix chief operating officer Datuk Ajay Marathe said Fab2 showcases the company’s advanced manufacturing process of cutting-edge batteries that it believes will usher in a new era of products for leading customers.

“We have been able to draw upon Malaysia’s deep pool of technical talent and are appreciative of the country’s business-friendly climate and close proximity to our customers and vendors,” he said.

Source: Bernama

US-based Enovix to invest RM5.8b in battery production facility in Malaysia

Malaysia is gaining more heft in the global supply chain as Infineon Technologies AG opens a major semiconductor manufacturing complex in the country, the South-East Asian nation’s leader said.

“We are now be able to receive and expand the technology. It shows Malaysia is now going up the ladder,” Prime Minister Anwar Ibrahim said at the opening ceremony of the first phase of Infineon’s €7bil (RM34.12bil) production site in the northern Malaysian district of Kulim on Aug 8.

Anwar highlighted the need for the local government and universities to help train the necessary talent to better accommodate Kuala Lumpur’s efforts to bulk up the local chip industry. This comes as major governments around the world are spending tens of billions to bolster the domestic production of semiconductors, a commodity that’s regarded as one of the most strategic goods for countries to develop emerging technologies.

Infineon chief executive officer Jochen Hanebeck said that the new Kulim campus progressed ahead of its original schedule and it will become the world’s largest silicon carbide power semiconductor manufacturing site once the second phase is also completed.

The new plant will focus on making power semiconductors that can help with decarbonisation in automotive, industrial and data centre fields. It is expected to create a total of 4,000 jobs eventually, according to Infineon.

Infineon’s investments in Malaysia highlight the South-East Asian nation’s potential to attract more tech investments at a time when major chip firms are seeking alternatives to China and Taiwan for manufacturing given increasing geopolitical uncertainties.

Malaysia has in past years emerged as a global hub for packaging and assembling, the final process before chips are ready for use in smartphones, data centres and electric vehicles. Major players including Intel Corp, ASE Technology Holding Co and Amkor Technology Inc have taken advantage of its skilled and lower-cost labour and proximity to major markets, especially as Covid and US-Chinese tensions disrupted the flow of chips globally.

In recent years however, China – eyeing packaging as a way to turbocharge locally made semiconductors – has emerged as a major assembly centre, while neighbouring countries including Singapore are also competing for multinational chip investment.

In response, Kuala Lumpur has implemented policies to boost its attractiveness, including US$5.6bil (RM24.95bil) of incentives and the setting up of a chip-design hub near the capital. It is also trying to draw more investments in wafer production, the front-end manufacturing considered to be the most valuable part of the chipmaking process, from the likes of Infineon and others to upgrade its capabilities.

Source: Bloomberg/The Star

Malaysia boasts of chip clout as Infineon opens €7bil site

German semiconductor giant Infineon Technologies AG will invest an additional €5 billion (RM30.1 billion) in constructing the world’s largest 200-millimetre silicon carbide power fabrication plant in Kedah.

The investment is for the second phase, on top of the original €2 billion for the first phase, according to a statement from the Malaysian Investment Development Authority (Mida). The two phases to expand its Kulim 3 fab building will together generate 1,500 jobs in Malaysia, the agency said. 

The plant located in Kulim High Tech Park is slated to be the largest 200-millimetre front-end manufacturing site for Infineon, focusing on automotive, green industrial power and power, and sensor systems.

According to Mida, Infineon transferred its silicon carbide and gallium nitride epitaxy production to Kulim Hi-Tech Park and expanded its manufacturing base. This would lead to an annual revenue potential of about €7 billion for the global semiconductor company by the end of the decade.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the construction of the world’s largest 200-millimetre silicon carbide power fabrication plant in Malaysia highlights the nation’s growing credibility as a regional hub for cutting-edge technology and innovation in the semiconductor space.    

“We warmly welcome long-term, committed partners like Infineon to, among others, enhance our economic complexity and push for net zero, as laid out in the New Industrial Master Plan 2030,” he added.  

Meanwhile, Mida chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said the expansion significantly strengthens Malaysia’s position in the global semiconductor supply chain.  

“As decarbonisation gains pace, this investment highlights the government’s dedication to green technologies and sustainable development, in line with the Green Investment Strategy (GIS),” Shamsul said.

Source: The Edge Malaysia

Infineon to invest additional RM30b to expand Kulim facility