PETALING JAYA: Global AI-enabled automation and semiconductor equipment provider Galatek Technologies has established its first manufacturing facility in Malaysia, committing to invest up to US$100 million (RM406 million) over the next five years, strengthening Penang’s position in the global semiconductor and advanced manufacturing value chain.
The new manufacturing, assembly and delivery facility, officially opened in the Prai Industrial Zone today, will serve as a regional production hub for semiconductor, advanced electronics and life sciences industries, supporting growing demand for automation, testing and AI-enabled manufacturing solutions.
Backed by investors including Granite Asia, Singapore-based Galatek has invested about US$2 million in its initial Malaysian operations and plans to significantly expand production capacity, workforce development and local supply chain partnerships as part of its long-term growth strategy in Southeast Asia.
The facility marks Galatek’s first manufacturing footprint in Malaysia and will serve as a key assembly, testing, and delivery centre for customers across Southeast Asia and global markets.
Its operations will focus on advanced equipment manufacturing, system integration, assembly, testing and delivery, while increasing local supplier participation and the localisation of procurement and manufacturing activities.
The event was officiated by Penang Chief Minister Chow Kon Yeow, and attended by InvestPenang CEO Datuk Loo Lee Lian, Malaysian Investment Development Authority (Mida) Penang director Muhammad Ghaddaffi Sardar Mohamed, Granite Asia senior managing partner Jenny Lee, as well as industry leaders and stakeholders.
Chow said Galatek’s decision to establish its first Malaysian manufacturing base in Penang reflected strong confidence in the state’s industrial ecosystem and growth potential.
“Galatek’s commitment to further investment and workforce expansion in Penang reinforces the state’s reputation as the Silicon Valley of the East and a preferred destination for technology companies seeking to innovate, expand and thrive.”
The investment was significant not only for its value but for the role it would play in strengthening Malaysia’s semiconductor and electrical and electronics (E&E) ecosystem, Chow said.
“We welcome this investment because it is fundamentally an investment in technology. The facility will produce highly specialised equipment required by industries for testing and advanced manufacturing applications, while also providing AI-related solutions,“ he added.
Chow said it helps address existing gaps in our supply chain and strengthens Malaysia’s ability to support both domestic manufacturers and international customers.
“While the investment may not be among the largest in monetary terms, it is strategically important in reinforcing our position as a semiconductor and E&E hub. It also supports the growth of the life sciences sector,” he said.
Founded as an AI automation solutions provider serving the semiconductor and life sciences industries, Galatek develops technologies that combine advanced optics, precision motion control, artificial intelligence and automation to improve manufacturing efficiency and process accuracy.
Galatek CEO David Tian said Malaysia offered a compelling platform for advanced manufacturing, supported by a skilled workforce, established semiconductor supply chains and a business-friendly environment.
“Penang was selected as a strategic location for our regional manufacturing and delivery operations because of its deep industry expertise and strong connectivity to global markets,” he said.
“The opening of this facility marks an important milestone in our long-term Southeast Asia strategy. Beyond manufacturing, we aim to build local engineering capabilities, deepen collaboration with Malaysian suppliers and contribute to the continued growth of the country’s high-technology industries.”
Lee said Galatek’s expansion came at a pivotal time as demand for AI-enabled semiconductor and advanced manufacturing equipment continues to accelerate worldwide. “The companies that have built the right capabilities ahead of this curve will define the next decade. Galatek is one of them.”
She added that Penang’s strong industrial heritage, engineering talent pool and supportive policy environment made it an ideal base for the company’s next phase of growth.
The Penang facility is expected to create between 20 and 30 jobs this year across engineering, operations, procurement, sales and technical support functions.
Galatek plans to expand its Malaysian workforce to around 100 employees over the next five years as production scales up.
