KUALA LUMPUR, August 29 – Bosch, a global technology and services provider, celebrated the official opening of its cutting-edge semiconductor backend site in Penang, solidifying its position as one of Asia’s most advanced facilities for the final testing of automotive chips and sensors. The company has invested approximately EUR 350 million (RM1.62 billion) in the site to bolster its semiconductor business and meet the increasing global demand for chips. The new site, spanning 100,000 square meters, includes around 18,000 square meters of clean rooms, office space, and R&D laboratories, providing ample room for up to 400 associates.
It represents a key component in Bosch’s growth strategy, particularly in the mobility sector, where the demand for semiconductors has surged. Klaus Maeder, member of the Bosch Mobility Sector Board, highlighted Penang’s strategic significance for this investment, with its strong semiconductor knowledge and skilled workforce. The site’s proximity to business partners and customers is expected to shorten delivery times and distances for the chips, enhancing efficiency and responsiveness. The facility in Penang focuses on backend production, the final testing phase of chips manufactured at Bosch’s fab in Dresden, Germany.
With this expansion, Bosch is reinforcing its global semiconductor activities to meet the growing chip demand across various industries. During the inauguration, YAB Chow Kon Yeow, caretaker Chief Minister of Penang, applauded Bosch’s contribution to Penang’s industrialization and commended its commitment to transforming the region into the “Silicon Valley of the East.” Malaysia’s solid reputation as a key investment destination for the semiconductor industry stems from its manufacturing excellence, robust infrastructure, dynamic talent pool, and strategic location.
The country is among the world’s top 10 producers of semiconductors and electronic products, accounting for approximately 7% of the global semiconductor trade. Bosch’s long-standing relationship with Penang is further strengthened by the establishment of this semiconductor backend site, reinforcing Malaysia’s position in global value chains and advanced manufacturing in the region. With its new Penang facility, Bosch is completing its internal process chain for semiconductors manufactured in Dresden, Germany.
The site is expected to employ up to 400 associates by mid-2030, adding to Bosch’s existing workforce of 4,200 associates in Malaysia. This investment underscores Bosch’s commitment to Malaysia and its dedication to contributing to the vibrant electrical and electronic ecosystem in Penang. As the world celebrates Bosch’s 100-year anniversary in Malaysia, the company’s new facility marks a significant milestone in the semiconductor industry and strengthens Malaysia’s position as a strategic investment hub in the region.
