KULIM: Ferrotec Group has further strengthened its manufacturing footprint in Malaysia with the opening of Ferrotec Manufacturing Malaysia’s Plant 2 in Padang Meha, Kulim.
In a statement yesterday, the company said this marks another significant milestone in the group’s expansion in Southeast Asia and its continued commitment to Malaysia’s semiconductor and advanced manufacturing ecosystem.
It added that Malaysia remains an important part of their Southeast Asian growth strategy, supported by growing semiconductor demand, established semiconductor ecosystem and the performance of the group’s existing operations in the country.
Ferrotec’s first manufacturing facility in Kulim involved an initial investment of more than RM900 million and commenced operations in January 2024. The company subsequently committed a further RM1 billion to its expansion in Kulim, bringing the cumulative investment for the two Kulim plants to approximately RM1.9 billion.
This latest expansion late last month will generate over 1,000 new high-value jobs for skilled Malaysian professionals—including engineers, technicians, and production specialists, further building on the workforce established by the first facility.
Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor said, “Our ambition is not simply to bring more factories into Kedah. Our ambition is to build a stronger industrial ecosystem where leading global companies can grow, local businesses can develop alongside them, and our people can benefit from better employment and career opportunities. Ferrotec’s continued expansion is an excellent example of the kind of long-term partnership we hope to build.”
The opening of Plant 2 significantly expands Ferrotec’s Kulim footprint, adding nearly one million square feet of highly automated manufacturing space equipped for over 700 high-precision CNC machines, IoT sensors, and autonomous guided vehicles.
Together with the existing facility’s established capabilities in quartz, advanced ceramics, precision metal fabrication, and electromechanical assembly for the semiconductor industry, Ferrotec’s Kulim operations now employ over 2,200 people with continued capacity for growth.
Malaysian Investment Development Authority (Mida) CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said, “Ferrotec’s decision to open a second plant in Kulim, in less than three years after its first plant began operations, reflects the group’s confidence in Malaysia as a base for semiconductor equipment manufacturing. The project brings advanced capabilities in quartz, ceramics and precision metal components into the country and, with more than 1,000 additional high-value jobs, creates valuable opportunities for Malaysian engineers, technicians and local suppliers. This is in line with the New Industrial Master Plan 2030 and the National Semiconductor Strategy, which aims to move Malaysia further up the semiconductor value chain. Mida will continue to work closely with Ferrotec as it ramps up Plant 2 and deepens its links with Malaysian companies.”
Ferrotec Corporation president and group CEO He Xian Han said, “Malaysia has a mature, well-established and dynamic semiconductor ecosystem. Its strong industrial foundation, comprehensive infrastructure and efficient government services provide favourable conditions for foreign investors to establish, operate and expand their manufacturing operations. These strengths reinforce our confidence in continuing to invest in Malaysia.”
Meanwhile, Ferrotec Manufacturing Malaysia managing director Anzhi He said, “When we first evaluated locations in Southeast Asia, we looked at many factors. Today, I can confidently say that choosing Malaysia and Kulim was one of the best decisions we made. Mida has been with us since our first conversations about Malaysia and continued to support us following our investment decision, connecting us with the relevant stakeholders and helping us address administrative matters when timing was critical.”
Plant 2 is targeting a capacity ramp-up in the first quarter of 2027 and full production by the second quarter. The facility reinforces Malaysia’s standing in the global semiconductor industry.
