Austriaheadquartered semiconductor manufacturer ATS Austria Technologie Systemtechnik AG plans to invest 8.5 billion ringgit 2 billion to set up a production plant in Malaysia, its first in Southeast Asian, Malaysias International Trade and Industry Ministry said on Thursday.
Construction of the facility in Kulim HiTech Park in the northern state of Kedah, is scheduled to begin in the second half of this year and commercial operations are targeted to commence in 2024, the ministry said in a statement.
Besides manufacturing of hightech products, a significant amount of RD activities will be executed at this new location, ATS Chief Executive Officer Andreas Gerstenmayer said.
ATS, which makes highend printed circuit boards and integrated circuit substrates used in mobile devices, industrial electronics, automotive applications as well as medical and health technology, has production facilities in Austria, India, China and South Korea.
Malaysia has a mature electrical and electronics manufacturing sector that supplies to big names including Apple Inc. Exports from the sector make up about 40 of its total annual exports and approximately 7 of global semiconductor trade, according to the government.
ATS footprint in Malaysia will also further boost the development of our semiconductor ecosystem, enable opportunities for our local vendors in the field of advanced electronics and spur hightech employment for Malaysians, Prime Minister Muhyiddin Yassin said.