MELAKA, July 10 – Texas Instruments Incorporated (TI) (Nasdaq: TXN) has announced its plans to expand its manufacturing presence in Malaysia with the establishment of two new assembly and test factories in Kuala Lumpur and Melaka. These investments are part of TI’s strategy to bring 90% of its assembly and test operations in-house by 2030, allowing for greater control over the supply chain.
YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, the Minister of Investment, Trade, and Industry (MITI), expressed his confidence in Malaysia’s investment ecosystem and commended Texas Instruments for its commitment to expanding its assembly and test operations in the country. He stated that this investment aligns with Malaysia’s focus on attracting high-tech, high-value investments to support its growing global and domestic economies. The expansion is expected to strengthen domestic value chains and create high-income employment opportunities for Malaysians.
This expansion comes at an opportune time as Malaysia strives to enhance its semiconductor industry ecosystem and drive economic growth. Datuk Wira Arham, CEO of the Malaysian Investment Development Authority (MIDA), reaffirmed MIDA’s support for TI’s expansion plans and emphasized the agency’s dedication to fostering a collaborative ecosystem that promotes knowledge exchange and facilitates investment.
Yogannaidu Sivanchalam, Vice President of Assembly and Test Manufacturing Operations at TI, highlighted that these investments are part of the company’s long-term strategy to meet the increasing demand for semiconductors and ensure a reliable supply. TI has been operating in Malaysia for over 50 years and recognizes the talented workforce in the country as a critical factor in its expansion plans.
In Kuala Lumpur, TI has acquired a building adjacent to its existing assembly and test factory on an 18-acre plot of land. With a potential investment of up to MYR 9.6 billion, the company plans to convert the building into a state-of-the-art assembly and test factory, spanning over 1 million square feet of cleanroom space. Construction is scheduled to commence later this year, with production expected to begin in 2025. The new facility will connect to the existing factory and create approximately 1,300 additional local jobs at full capacity.
In Melaka, TI is constructing a six-level assembly and test factory next to its current facility. This new factory will encompass more than 400,000 square feet of cleanroom space and is expected to support up to 500 local jobs at full capacity. With a potential investment of up to MYR 5 billion, production in this facility is also slated to commence in 2025.
Both new factories will feature advanced factory automation and employ environmentally responsible construction methods to achieve LEED Gold certification, emphasizing energy efficiency and sustainability. TI aims to reduce waste, water, and energy consumption per chip, demonstrating its commitment to responsible and sustainable manufacturing practices.
With these investments, TI is reinforcing its global manufacturing capabilities and ensuring a reliable supply for its customers. By manufacturing over 90% of its products internally by 2030, TI aims to provide geopolitically secure capacity for years to come.
