One of the world’s leading developers and manufacturers of critical power solutions for the electronics industry has begun construction on its latest manufacturing facility in Perak, Malaysia. The Asia III site will be the company’s largest facility, representing the biggest investment valued at RM228 million for Phase 1, over 5 years. This expansion is vital in the company’s global growth strategy, increasing production capacity to support surging customer demand across regions.
Construction began in September 2022, with the facility expected to be fully operational by the second quarter of 2024. The new factory complements the company’s existing sites in Vietnam, China, the US, and Germany, enhancing the resilience and flexibility of its supply chain. It will also create significant employment opportunities in the surrounding region. The factory, once completed, will employ approximately 1,200 people.
The groundbreaking ceremony was attended by the Menteri Besar of Perak; the Perak State EXCO for Industry, Investment and Corridor Development; the Perak State EXCO for Youth, Sport, Communication and Multimedia cum State Assemblyman for Bota Constituency; the Deputy CEO (Investment Development), Malaysian Investment Development Authority (MIDA); the CEO of InvestPerak, and the CFO of the firm.
The Menteri Besar of Perak, in his Keynote Address, highlighted that the State Government is focused on the needs of the rakyat. These high-impact projects will bring in investments, strengthen the socio-economy and increase job creation. These investments will stimulate the local economy, thus contributing significantly to the economic recovery of Perak after the COVID-19 pandemic.
The Deputy CEO (Investment Development) of MIDA stated that many MNCs have established their base operations here, including the power company, as a result of the stability and flexibility of the nation’s business and investment policies. Their presence is a testament to their confidence in Malaysia’s vibrant electrical and electronics (E&E) ecosystem, which comprises players across the value chain, from equipment supplies to assembly and testing.
The firm’s investment in Malaysia will undeniably further strengthen the country’s competitiveness and ensure its industries remain resilient and competitive. The InvestPerak CEO commented that Perak is strategically located at the midpoint between Penang and Selangor which are two economic focal points in Malaysia. This is regarded as their advantage – the region can obtain economic spillover from both States.
The demand for the power company’s products is strong across the entire power range driven by demand from healthcare, semiconductor, and industrial customers. The demand is only expected to increase over the next decade. The newly completed facility will employ around 1,200 employees and it will be its largest manufacturing facility globally complementing the existing sites in Vietnam, China, the USA and Germany.
According to a recent report by MIDA, E&E is a major driver of Malaysia’s industrial development, contributing significantly to GDP growth, export earnings, investment, and employment, thus stimulating the growth of new economic clusters, particularly to manufacturing-related services such as testing and engineering, as well as trade services-related global hub activities.
Through MIDA, the Malaysian Government is encouraging manufacturers to establish more R&D and D&D centres, centres of excellence, global procurement centres, logistic centres, and OHQs in Malaysia.
Currently, E&E manufacturers are exploring the business potential that can be derived from new growth areas such as E-Commerce, Automation, IoT, and AI, accelerating the move towards Industry 4.0 by society and industry alike. Today, IoT is pushing demand for more advanced semiconductor devices such as sensors, resistors, and transceivers, to help the industry to adopt digitisation and digitalisation aimed at improved productivity, profit, and competitiveness.
