BOSCH, a leading global supplier of technology and services, officially opened its advanced semiconductor backend site (semiconductor test centre) in the Batu Kawan Industrial Park (BKIP) today.
The facility stands as one of Asia’s most advanced semiconductor backend sites in Penang for the testing of its automotive chips and sensors.
Penang is already home to three existing Bosch manufacturing sites and research and development offices since 1972.
Bosch mobility sector board member Klaus Maeder said the company intends to invest around 350 million euros (RM1.62 billion) on the new facility until the middle of 2030.
“With the opening, the company continues to systematically reinforce its semiconductor business and manufacturing footprint to meet global chip demand.
“Semiconductors are key to the success of all Bosch’s business areas.
“Thus, the Penang backend site is a key component in our growth strategy in the mobility sector as we respond to the increased demand for semiconductors,” Klaus said in his speech before Caretaker Penang Chief Minister Chow Kon Yeow officiated the grand opening ceremony today.
According to Klaus, the company decided to invest and add new facility in Penang for its high level of semiconductor knowledge and skilled workforce.
“The proximity to business partners and customers is another advantage, as it will shorten delivery times and distances for the chips.
“With a land area of 100,000sq m, the new facility in Penang will primarily focus on the final testing of chips manufactured at Bosch’s fab in Dresden, Germany,” he said.
Klaus added that Malaysia is estimated to cover around 13 percent of the global backend production.
“We are further expanding the local semiconductor ecosystem and reinforcing our commitment to Malaysia amid our 100-year celebration.
“Our new facility in Penang brings Bosch’s global manufacturing network closer to outsourced semiconductor assembly and test vendors (OSATs) in the region as well as to our automotive customers in the Asian market,” he said, adding that the new Penang facility is expected to employ up to 400 associates by the middle of 2030.
Meanwhile, Chow expressed delight in housing Bosch’s semiconductor backend site at Batu Kawan Industrial Park, marking the company’s fourth facility in the state.
“This latest facility in Penang affirms the strong confidence of Bosch in our ecosystem’s capability to fulfil the stringent requirements in the automotive sector.
“The company’s sustained confidence augurs well for the state’s development, thus encouraging us to strive not only harder in what we do well but also greater in our niche area.
“Hence, I am confident for Bosch’s investment project to deepen the state’s engineering expertise in the automotive semiconductor industry, while creating greater opportunities for our local supply chain and of course, job opportunities for local talents,” said Chow.
Chow assured that the state government, via InvestPenang and other relevant state agencies, is committed to providing continuous facilitation and support for the investors.
He also emphasised the commitment to elevate Penang’s liveability stature, develop future-proof infrastructure and ramp up the talent supply to ensure a sustainable investment ecosystem in the region.
Chow also expressed his appreciation to the Malaysian Investment Development Authority (Mida), InvestPenang, and Penang Development Corporation (PDC) for their synergistic efforts in engaging investors and facilitating project implementations.
Also present during the opening ceremony were InvestPenang chief executive officer Datuk Loo Lee Lian, the Chief Minister’s special investment adviser Datuk Seri Lee Kah Choon and Mida chief executive officer Datuk Arham Abdul Rahman.
Story by Riadz Akmal
Pix by Noor Siti Nabilah Noorazis
Video by Ahmad Adil Muhamad