AEM has expanded its presence in Asia by opening a new manufacturing plant in Penang, Malaysia. The facility comprises a 365,000-square-foot area for assembly, quality assurance (QA), a warehouse, an R&D lab, and more, to develop advanced testing and handling equipment.
This expansion comes on the heels of AEM’s highest recorded nine-month revenue level in history for 9M2022 at S$747 million. The new plant will also allow AEM to tap into the region’s growth opportunities and talents and bring its operations closer to existing and new customers.
The plant was officiated by the Chief Minister of Penang, Right Honorable Chow Kon Yeow; the Deputy CEO Investment Development of MIDA, Lim Bee Vian; AEM Chief Executive Officer (CEO), Chandran Nair; and AEM’s Non-Executive Chairman, Loke Wai San. Guests included Penang State Exco Trade, Industry & Entrepreneur Development, Yang Berhormat Dato Haji Abdul Halim Bin Haji Hussain; the CEO of InvestPenang, Dato’ Loo Lee Lian; the Special Investment Advisor to the Chief Minister of Penang, Dato’ Seri Lee Kah Choon; the Deputy High Commissioner to Malaysia, Shivakumar Nair; together with other dignitaries. This momentous ceremony also included an exclusive tour of the plant. Almost 400 employees of AEM joined the celebration with the company’s leadership team.
“AEM’s new manufacturing plant in Penang lends credence to our conduciveness as a global semiconductor hub. With half a century of industrialization in its DNA, Penang has navigated numerous up and down cycles, and has emerged stronger from each. Experiencing an upward trend in its exports, Penang contributed an average 29 percent of Malaysia’s export, and 58 percent of the nation’s trade surplus over the past five years,” said Penang Chief Minister Chow. “In terms of investments, Penang is among the top contributors to the country, garnering RM9.2 billion in approved manufacturing investments from January to September 2022. Particularly, investments from machinery and equipment industry amounted to a total of RM7.3 billion from 2020 to September 2022, represented 57 percent of the country’s total.”
“Riding on the prolific growth of advanced technologies, I am confident that Penang will be benefitting from the semiconductor industry’s long-term outlook. The state, via InvestPenang, is looking forward to working with AEM in accelerating the region’s vibrant electrical and electronics (E&E) ecosystem development, anchoring our status as the Silicon Valley of the East,” he added.
“AEM’s footprint in Malaysia will be a strategic advantage to Malaysia’s E&E industry, as the company can offer customized testing solutions for the electronics and semiconductor industries,” said Lim. “I am certain that this project demonstrates not only AEM’s confidence in Malaysia’s long-term investment propositions but also the thriving state of the manufacturing industry and its ecosystem in Malaysia. The project is a parallel testament of the global investors’ confidence in Malaysia as the preferred investment destination and the local companies’ capability and readiness to support high-profile business ventures and activities.”
“We’re pleased to announce the opening of our new plant in Penang. It allows us to scale up testing and handling capabilities to meet the growing demand for new semiconductor devices. We ensure our customers’ success by continuing to grow our capabilities to deploy quickly at scale. Together with our centre of excellence in Singapore, I believe we will solidify our position as a hub in the region,” said Nair.
Malaysia is an important market as it is strategically positioned in the heart of Southeast Asia. The E&E industry contributes significantly to Malaysia’s GDP growth, export earnings, investment and employment and plays a vital role in the country’s industrial development. From January to September 2022, Malaysia attracted a total of RM22.6 billion in approved investments for the E&E industry.
As a hub in the semiconductor global supply chain, Penang accounts for 80 percent of the nation’s contribution to global backend semiconductor output, and over 5 percent of the world’s semiconductor sales over the last few years.
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