Japanese semiconductor firm Ferrotec Holdings Corporation has broken ground on its second high-tech manufacturing facility at Kulim, Kedah of Malaysia, with an investment of MYR 1 billion ($226 million).

The firm said in a statement on Wednesday that this reinforces its long-term commitment to Malaysia and its growing role in the global semiconductor industry.

Set for completion within a year, the second facility will strengthen Ferrotec’s Southeast Asian footprint, enabling faster delivery, enhanced customer service, and greater innovation for global markets across Asia, Europe, and the Americas, bringing the company’s total Malaysian investment to MYR 1.9 billion ($430 million).

The new Kulim Factory #2 will span nearly 1 million square feet across 20 acres and
feature over 700 CNC machines, smart production lines, IoT-enabled systems, and
predictive maintenance capabilities – embodying Industry 4.0 principles.

It is expected to create over 1,000 high-value jobs, enhancing Ferrotec’s precision manufacturing capacity for semiconductor components.

“The groundbreaking of our second plant in Kulim is not only an important milestone in
the history of Ferrotec, but also a true reflection of our deep cooperation on building the semiconductor industry chain,

“The success of our first facility has proven the validity of Ferrotec’s strategy of ‘rooting in Malaysia and serving the global market’,” said He Xian Han, Group Chief Executive Officer and President.

According to him, this investment has strengthened the firm’s confidence to deepen cooperation and expand investment, setting a benchmark for Ferrotec’s ventures in Malaysia.

“The strong support from the Malaysian government, Kedah state, and Malaysian Investment Development Authority (MIDA) has given us the confidence to expand our presence here and further integrate into Malaysia’s vibrant semiconductor ecosystem,

“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 forwardlooking semiconductor value chain in Malaysia and beyond,” he added.

Anzhi He, Managing Director of Ferrotec Manufacturing Malaysia, also said that Kulim Plant #2 is not merely an expansion – it is a statement of confidence in Malaysia’s
thriving semiconductor ecosystem.

“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,

“Together with the support of MIDA, KTPC, and the Kedah State Government, we are not just building factories – we are shaping the future of AI and the fast-growing digital economy, powered by Malaysian talent and Ferrotec’s 45 years of engineering excellence,” he added.

Meanwhile, Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, said that Ferrotec’s continued expansion in Malaysia underscores the country’s position as a premier destination for high-tech investments in the semiconductor industry.

“This commitment not only reflects investor confidence in our policies, infrastructure, and talent—but also reinforces our ambition to become a regional leader in advanced manufacturing,” he noted.

According to him, the investment strengthens the global semiconductor value chain from the heart of Kedah.

“We look forward to even greater collaboration as Malaysia advances its New Industrial Master Plan 2030 and fosters innovation-driven, sustainable growth,” he added.

This expansion aligns with Malaysia’s New Industrial Master Plan 2030 (NIMP) and
Kedah’s E10 initiative, both of which aim to position the country as a regional hub for advanced manufacturing and digital transformation, said the statement.

Ferrotec highlighted that the firm remains guided by its core values of diligence, aspiration, exploration, and innovation, driving sustainable growth and deeper collaboration in Malaysia and beyond.

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