KUALA LUMPUR: Texas Instruments (TI) is investing RM14.6 billion to expand its operations in Kuala Lumpur and Malacca with added production in both locations expected to begin as early as 2025.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the US-headquartered semiconductor company’s RM9.6 billion investment in Kuala Lumpur would create 1,300 local jobs while RM5 billion to be invested in Malacca would create 500 local jobs.
“TI plans to expand its assembly and test operations to reflect Malaysia’s clear positioning in the global semiconductor supply chain while complementing our New Investment Policy and New Industrial Master Plan’s focus on attracting hi-tech, high-value investments to support our increasingly digitised global and domestic economies,” he said in a posting on Twitter today.
In a separate statement, the Malaysian Investment Development Authority (Mida) said these new investments would support TI’s plan to make 90% of its assembly and test operations internal by 2030 to have greater control of supply.
Mida said the announced expansion reflected the joint efforts of TI, the Malaysian government, especially the Ministry of Investment, Trade and Industry (Miti), and Mida to reinforce Malaysia’s standing in the semiconductor industry and the initiatives aimed to drive economic growth, attract investments and foster knowledge exchange, thus contributing to the country’s overall development.
Mida said the timing of the expansion aligned with Malaysia’s broader strategy of strengthening the semiconductor industry ecosystem and driving economic growth.
CEO Datuk Arham Abdul Rahman said Mida is fully dedicated to supporting TI’s expansion plans, which would not only bring significant investments but also enhanced analogue and embedded processing manufacturing capabilities to the country.
“This partnership further solidifies Malaysia’s position as a leading hub in the region for semiconductor innovation,” he added.
Meanwhile, Texas Instruments vice-president for assembly and test manufacturing operations Yogannaidu Sivanchalam said these investments are part of TI’s long-term strategy to expand its internal manufacturing capacity to support the increasing need for semiconductors and to provide greater assurance of supply.
“TI is proud to have been operating in Malaysia for more than 50 years and our decision to expand our back-end manufacturing is a reflection of the talented and growing team in Malaysia that will be critical to TI’s future,” he said. – Bernama
