Ferrotec expected to create 1,000 high-value jobs in Malaysia with second smart factory in Kulim, Kedah

The RM1bn investment is said to mark another key milestone in Malaysia’s journey to become a global hub for semiconductor innovation.

Ferrotec Holdings Corporation has broken ground on its second high-technology manufacturing facility in Kulim, Kedah, as part of a RM1bn expansion that is expected to generate over 1,000 skilled jobs and enhance Malaysia’s role in the global semiconductor supply chain.

The new site is expected to be completed within a year and will nearly double Ferrotec’s manufacturing footprint in Southeast Asia, bringing its total investment in the country to RM1.9bn. The company also expressed hopes that this new site will strengthen its ability to serve customers across Asia, Europe, and the Americas with greater speed and innovation.

A future-ready workplace built on Industry 4.0

Spanning 20 acres and close to 1mn square feet, Kulim Factory #2 is being designed with the future of work in mind. It will comprise 700 computer numerical control (CNC) machines, smart production lines, IoT-enabled systems, and predictive maintenance capabilities.

Speaking at the ground-breaking ceremony on 22 April 2025, He Xian Han, Group CEO & President of Ferrotec, said: "With our second facility, we aim to better serve our global customers with high-quality, innovative components and to contribute to the creation of a collaborative, resilient, and forward- looking semiconductor value chain in Malaysia and beyond."

Echoing this sentiment, Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia, added: "This plant is not just bigger—it is smarter. Powered by Industry 4.0 technologies, it embodies Ferrotec’s vision for a modern factory where machines learn, adapt, and collaborate with human ingenuity."

Malaysia’s growing appeal in the global semiconductor space

The project is supported by key agencies including the Malaysian Investment Development Authority (MIDA), Kulim Hi-Tech Park Corporation (KTPC), and the Kedah State Government. It also aligns with national and state-level strategies, namely, Malaysia’s New Industrial Master Plan 2030 (NIMP) and Kedah’s E10 initiative whereby both of which prioritise advanced manufacturing and digital transformation.

Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, congratulated Ferrotec: "MIDA is proud to support Ferrotec’s journey as it strengthens the global semiconductor value chain from the heart of Kedah."

The ceremony was attended by a host of distinguished guests, including Noor Ikhsan Abdul Aziz, COO of Invest Kedah, Mohd Rushdan Mohd Ghazali, Director of Malaysian Investment Development Authority (MIDA) Kedah, Ar. Haji Mohd Nazri Bin Harun from Majlis Perbandaran Kulim Kedah (MPKK), Bao You Wei, President of Ferrotec HangZhou, He Xian Han, Group CEO & President of Ferrotec Holdings Corporation, Takeru Yamamura, CEO of Ferrotec Manufacturing Malaysia, and Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia.

Lead Image / Menteri Besar Johor Onn Hafiz Ghazi’s Facebook post