Texas Instruments to expand ops in KL, Melaka

TI’s RM9.6bil investment in Kuala Lumpur will create 1,300 local jobs, while RM5bil will be invested in Melaka to create 500 local jobs, said Tengku Zafrul.

PETALING JAYA: US-based semiconductor company Texas Instruments (TI) will be investing RM14.6bil to expand its operations in Kuala Lumpur and Melaka, potentially creating around 1,800 new jobs.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said TI’s RM9.6bil investment in Kuala Lumpur will create 1,300 local jobs, while RM5bil will be invested in Melaka to create 500 local jobs.

“TI will expand its operations in Kuala Lumpur and Melaka. Both locations will begin production as early as 2025,” he posted on Twitter, yesterday.

The aforementioned new investments will support TI’s plan to internalise 90% of its assembly and test operations by 2030, allowing the company to have greater control of supply.

Tengku Zafrul said TI’s expansion plans not only reflect the country’s clear positioning in the global semiconductor supply chain, but also complements the New Investment Policy and New Industrial Master Plan focus on attracting hi-tech, high value investments.

“We are encouraged by TI’s continued confidence in the local investment ecosystem. Further, TI’s expanded investment footprint in our country will not only bolster domestic value chains but also create knowledge-based, high-income employment opportunities for Malaysians,” he said in a statement yesterday.

Regarding its expansion in Kuala Lumpur, TI recently purchased the building next to its existing assembly and test factory in Kuala Lumpur that sits on 18 acres of land.

The company plans to convert the said building into an assembly and test factory with more than one million sq ft of cleanroom space at a potential investment of up to RM9.6bil.

“Construction is expected to start later this year, with production to begin as early as 2025. The new factory will be connected to the company’s existing factory and create nearly 1,300 additional local jobs at full build,” it noted.

Moreover, TI is also constructing a new, six-level assembly and test factory next to its existing Melaka assembly and test factory. The new facility will have more than 400,000 sq ft of cleanroom space and will be connected to TI’s existing factory.

“With a potential investment of up to RM5bil, this new factory will support up to 500 local jobs at full build and is also expected to begin production as early as 2025,” it said.

Malaysian Investment Development Authority (Mida) chief executive officer Datuk Wira Arham said Mida is committed to facilitating TI’s expansion and fostering a collaborative ecosystem.

“Mida is fully dedicated to supporting TI’s expansion plans, which will not only bring significant investments but also enhance analog and embed processing manufacturing capabilities to the country. This partnership further solidifies Malaysia’s position as a leading hub in the region for semiconductor innovation,” he said.

TI assembly and test manufacturing operations vice-president Yogannaidu Sivanchalam said the investments are part of the group’s long-term strategy to expand its internal manufacturing capacity to support the increasing need for semiconductors and provide greater assurance of supply.

“TI 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 TI’s future,” he said.