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31 min ago 2 min read
German technology company Aixtron has signed an agreement with the Malaysian Investment Development Authority (MIDA) to build a €40m ($47m) greenfield semiconductor manufacturing facility at Bandar Cassia Technology Park in Penang, Malaysia.
The semiconductor facility, expected to be operational in spring 2027, with first deliveries in the second half of 2027, will be Aixtron’s first manufacturing development in Malaysia.
Aixtron plans to manufacture part of its 100mm,150mm, and 200mm semiconductor product portfolio at the new plant. It says this will increase production capacity and supply chain resilience for its customers in the Asia-Pacific region.
The project aligns with MIDA’s 2030 industrial plan, which aims to help Malaysia attract more advanced semiconductor manufacturing, create skilled jobs, and become a regional technology hub.
Advanced semiconductors have applications in electronics, communications, optoelectronics, and AI, which are all experiencing rapid growth. According to market research, Malaysia’s semiconductor market is expected to reach $10.85bn in 2025 and is projected to climb to $16.51bn by 2030.
By developing conducive policies and attractive incentives, the MIDA wants to support a sustainable economic landscape and appeal to US and China-based investors.
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, said, “[Malaysia is] moving beyond assembly-centric activities to become a global hub for the critical enablers of the AI and electric vehicle (EV) revolutions.”
In 2023, Malaysia had RM 329.5bn ($83bn) in investments across services, manufacturing, and primary sectors, a 23% increase from the previous year.
