KUALA LUMPUR: AEM, a global leader in test innovation, has opened its new manufacturing plant in Penang, which spans an area of 365,000 sq ft.
The new plant was meant for assembly, quality assurance (QA), a warehouse, a research and development lab, and more to develop advanced testing and handling equipment.
The expansion comes on the heels of AEM's highest recorded nine-month revenue level last year at SG$747 million.
The new plant will also allow AEM to tap into the region's growth opportunities and talents and bring its operations closer to existing and new customers.
AEM chief executive officer Chandran Nair said the new plant allowed the company to scale testing and handling capabilities to meet the growing demand for new semiconductor devices.
"We ensure our customers' success by continuing to grow our capabilities to deploy quickly at scale. Together with our centre of excellence in Singapore, I believe we will solidify our position as a regional hub," he said.
Penang chief minister Chow Kon Yeow said AEM's new manufacturing plant in the state lends credence to Penang's conduciveness as a global semiconductor hub.
"With half a century of industrialisation in its DNA, Penang has navigated numerous up and down cycles and has emerged stronger from each.
"Experiencing an upward trend in its exports, Penang contributed an average of 29 per cent of Malaysia's export and 58 per cent of the nation's trade surplus over the past five years.
"In terms of investments, Penang is among the top contributors to the country, garnering RM9.2 billion in approved manufacturing investments from January to September 2022.
"Particularly, investments from the machinery and equipment industry amounted to a total of RM7.3 billion from 2020 to September 2022, representing 57 per cent of the country's total," said Chow.
He is confident that Penang will benefit from the semiconductor industry's long-term outlook.
"The state, via InvestPenang, is looking forward to working with AEM in accelerating the region's vibrant electrical and electronics (E&E) ecosystem development, anchoring our status as the Silicon Valley of the East," he said.
Malaysian Investment Development Authority deputy CEO of investment development Lim Bee Vian said AEM's footprint in Malaysia would be a strategic advantage to Malaysia's E&E industry, as the company can offer customised testing solutions for the electronics and semiconductor industries.
"I am confident that this project demonstrates not only AEM's confidence in Malaysia's long-term investment propositions but also the thriving state of the manufacturing industry and its ecosystem in Malaysia.
"The project is a parallel testament of the global investors' confidence in Malaysia as the preferred investment destination and the local companies' capability and readiness to support high-profile business ventures and activities," she said.
As a hub in the global semiconductor supply chain, Penang accounts for 80 per cent of the nation's contribution to global backend semiconductor output and over five per cent of the world's semiconductor sales over the last few years.