KUALA LUMPUR: ATX Semiconductor Group today launched its first manufacturing plant outside of China in Free Trade Zone III, Batu Berendam, Melaka, with an investment of US$55 million.
Known as the ATX Semiconductor (Melaka) Sdn Bhd, the plant is also the first ATX manufacturing plant outside China.
The company said its robust footprint in China, coupled with its pioneering packaging and test solutions, positions it strongly to capitalise on its capabilities as it expands to the new facility in Melaka.
The company invested more than US$55 million for its expansion in Melaka.
The new facility has begun its manufacturing activities and will continue to expand its production capacity to better serve the customers in Malaysia and the surrounding regions.
Full capacity operations are expected to commence in the first half of 2026.
"ATX investment in Malaysia reinforces ATX's commitment in expanding world-class semiconductor manufacturing capabilities. The products and services ATX provide encompasses all industries including communication, automotive, consumer, industrial, high-performance computing and medical. ATX is strengthening the electronics supply chain for Malaysia and their customers worldwide," said ATX Group chief executive officer Chris Hsu.
The event was attended by Melaka state government officials, government officials from the Malaysian Investment Development Authority (MIDA), ATX customers and business partners along with ATX Group employees.
ATX Melaka has forged partnerships with multinational leaders like Panasonic and UTAC Group.
Malaysian Investment Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said the launch of ATX Semiconductor's facility in Melaka reflected its strong economic position and the diverse attractions that make Malaysia an ideal investment hub in the region.
"With strategic proximity to key markets, a rich culture, and a robust semiconductor ecosystem, Malaysia is well-positioned to attract a broad spectrum of international investors, including major Chinese corporations.
"This project will create over 2,000 jobs and strengthen our supply chains to meet the evolving needs of the E&E industry. The potential for investments in Malaysia is vast, and MIDA is eager to support ATX Semiconductor and others in tapping into these opportunities," he added.