Texas Instruments to Expand Manufacturing Operations in Malaysia with New Assembly and Test Factories

Texas Instruments, a leading chipmaker, has announced its plans to expand its manufacturing operations in Malaysia with the establishment of two new assembly and test factories. The company intends to invest up to RM14.6 billion in these facilities, further solidifying its presence in the country.

The first expansion involves the construction of a new facility adjacent to Texas Instruments’ existing assembly and test factory in Kuala Lumpur. Construction is expected to commence later this year, and production is set to begin as early as 2025. This expansion in Kuala Lumpur is estimated to bring in potential investments of RM9.6 billion and create approximately 1,300 additional jobs.

The second expansion entails the construction of a six-level assembly and test factory next to the company’s existing facility in Melaka. This project holds a potential investment of RM5 billion and is projected to generate up to 500 jobs. Similar to the Kuala Lumpur facility, production at the new factory in Melaka is also anticipated to commence in 2025.

The Malaysian government expressed its encouragement and support for Texas Instruments’ decision to expand its manufacturing operations in the country. Investment, Trade, and Industry Minister Tengku Zafrul Aziz highlighted the confidence that Texas Instruments has shown in Malaysia’s investment ecosystem. He emphasized that the expansion aligns with Malaysia’s positioning in the global semiconductor supply chain, while complementing the government’s new investment policy and industrial master plan aimed at attracting high-tech and high-value investments.

Minister Tengku Zafrul further emphasized that the expansion will not only strengthen domestic value chains but also create knowledge-based employment opportunities and contribute to the development of a high-income workforce in Malaysia.

Yogannaidu Sivanchalam, Vice President of Assembly and Test Manufacturing Operations at Texas Instruments, stated that the expansion is part of the company’s long-term strategy to expand its internal manufacturing capacity. The move aims to address the increasing demand for semiconductors and ensure a reliable supply. He expressed pride in Texas Instruments’ longstanding presence in Malaysia, which spans over 50 years, and emphasized the critical role of the talented and growing Malaysian team in the company’s future success.

Texas Instruments’ decision to expand its manufacturing operations in Malaysia highlights the country’s attractiveness as a strategic location in the global semiconductor industry. The investment will not only boost the local economy but also contribute to the growth of the high-tech sector and provide employment opportunities for Malaysians in the evolving digital economy.

13 June 2023

Author: Terry KS

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