Texas Instruments to expand operations in Malaysia with new factories, 1,800 jobs to be created

A potential of RM9.6bn will be invested in Kuala Lumpur, and is projected to create 1,300 jobs. At the same time, Melaka will see RM5bn worth in investments, and 500 jobs created.

US-based semiconductor company Texas Instruments will be expanding its operations in Malaysia.

Through two new assembly and test factories in Kuala Lumpur and Melaka, Texas Instruments will be investing a total of RM$14.6bn for this expansion. Of this, RM9.6bn will be invested in Kuala Lumpur, and is projected to create 1,300 jobs. Melaka will see RM5bn worth in investments, and 500 jobs created. 

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said: "Texas Instruments' plans to expand its assembly and test operations reflect Malaysia's importance in the global semiconductor supply chain.

"This development is also in line with the New Investment Policy and the focus of the New Industrial Master Plan to attract high-tech and high-value investments. Texas Instruments' increased investment will not only strengthen the domestic value chain, but also create knowledge-based and high-income job opportunities for Malaysians."

Kuala Lumpur expansion

For the expansion, Texas Instruments has recently purchased the building next to its existing assembly and test factory in Kuala Lumpur that sits on 18 acres of land. It plans to convert the building into an assembly and test factory, with over 1mn square feet of cleanroom space.

Construction is expected to start later in 2023, with production to begin as early as 2025. The new factory will connect to the company’s existing factory and create nearly 1,300 additional local jobs at full build.

Construction underway in Melaka

Texas Instruments is also in the midst of constructing a new, six-level assembly and test factory next to its existing Melaka assembly and test factory. The new factory will include more than 400,000 sq ft of cleanroom space and will connect to the company's existing factory. With a potential investment of up to MYR 5bn, this new factory will support up to 500 local jobs at full build and is also expected to begin production as early as 2025.

Building the next era of assembly and test facilities in Malaysia

At full production, Texas Instruments’ new factories in Malaysia will feature advanced factory automation to assemble and test analog and embedded processing chips daily that will go into electronics such as renewable energy sources and electric vehicles.

Both factories will utilise environmentally responsible construction methods that emphasise an energy-efficient design. This will help to meet one of the Leadership in Energy and Environmental Design (LEED) building rating system’s highest levels of structural efficiency and sustainability: LEED Gold. Advanced equipment in the factories will reduce waste, water and energy consumption per chip, further demonstrating Texas Instrument’s commitment to responsible, sustainable manufacturing.

Texas Instruments has 15 manufacturing sites worldwide, including wafer fabs, assembly and test factories, and bump and probe facilities.

These new investments together will support TI’s plan to bring 90% of its assembly and test operations internally by 2030 to have greater control of supply, as shared by the Malaysian Investment Development Authority (MIDA). The timing of the expansion also aligns with Malaysia’s broader strategy of strengthening the semiconductor industry ecosystem and driving economic growth.

Datuk Wira Arham, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), reaffirmed MIDA’s commitment to facilitating TI’s expansion and fostering a collaborative ecosystem. He emphasised: “MIDA is fully dedicated to supporting Texas Instruments' expansion plans, which will not only bring significant investments but also enhanced analog and embedded processing manufacturing capabilities to the country.”

Yogannaidu Sivanchalam, Vice President, Assembly and Test Manufacturing Operations at TI added, “These investments are part of Texas Instruments' long-term strategy to expand our internal manufacturing capacity to support the increasing need for semiconductors and provide greater assurance of supply. Texas Instruments 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 Texas Instruments' future.”

Thank you for reading our story! Please leave us a comment if you enjoy our content — take our 2023 Readers' Survey here.

Lead image / Tengku Zafrul Facebook