PENANG-based Electrical & Electronic (E&E) company YBS International Berhad is starting a strategic partnership with Enovix Corporation, a United States-based advanced silicon battery manufacturer, to establish a next-generation battery manufacturing facility at Penang Science Park.
Known as Fab-2, the plant will be Enovix’s latest addition to the existing site in the United States. Housing the company’s first high-volume production line, this facility is slated to produce more than 9 million batteries annually when fully ramped.
During the Manufacturing Supply Agreement (MSA) signing ceremony at E&O Hotel today, it was revealed that the plant would be located in an existing YBS building at Penang Science Park.
YBS International Berhad chief executive officer Jackie Yong said Enovix has an exciting battery technology.
“We believe that Enovix will become a market leader and we look forward to supporting the company’s goals and sharing in its growth and success,” Yong said.
Enovix Corporation chief operating officer Ajay Marathe said the corporation was thrilled to mark the significant milestone.
“Besides working with YBS International Berhad, we look forward to collaborating with InvestPenang, Malaysian Investment Development Authority (Mida), and the Northern Corridor Implementation Authority (NCIA) to secure investment incentives which can support our long-term goals in Malaysia.
“Malaysia, particularly Penang, is rich with semiconductor-trained engineers who have a manufacturing-excellence mindset.
“We are pleased to advance our presence in the region to support our rapid growth,” Ajay said.
It is understood that following the MSA, YBS International Berhad, under the direction of Enovix, will provide the building and capital for equipment and labour for Fab-2, and Enovix’s next-generation manufacturing lines, Gen2 Autoline 1.
Mida chief executive officer Datuk Wira Arham Abdul Rahman congratulated Enovix and YBS International Berhad on their partnership through the signing of the agreement.
“The establishment of the manufacturing hub in Malaysia marks a momentous step, bringing advanced silicon anode batteries technology to our shores,” he said.
Caretaker Chief Minister Chow Kon Yeow said Penang is excited to welcome Enovix to be part of the state’s ecosystem.
“Moving forward, Enovix’s revolutionary technology and state-of-the-art offerings provide a clear opportunity for Penang to benefit in terms of knowledge sharing and skillset uplift.
“Penang is proud that its well-developed industrial ecosystem is recognised by leaders across the E&E industry.
“Despite being the second smallest state in Malaysia, Penang is one of the country’s key contributors to investment inflows and external trade.
“Having built a solid reputation after 50 years of industrial excellence, Penang has successfully transformed from a cluster of low value-added manufacturing operations to a thriving, high-technology industrial hub,” Chow said in his speech.
He said Penang has demonstrated its significance in the E&E sector by constantly contributing over 50% of the country’s E&E exports over the past five years.
“In terms of investment performance, the state has garnered RM13.7 billion in total approved manufacturing investments in 2022; and in the first quarter of 2023, Penang is the second highest contributor for the country’s approved manufacturing investments, with RM3.3 billion recorded,” Chow added.
He said Penang’s commendable performance speaks to the robust local ecosystem the state possesses.
“The ecosystem comprises multinational corporations (MNCs), large local corporations (LLCs) and small and medium-sized enterprises (SMEs).
“It is worth noting that the MNCs have played a significant role in developing the local capabilities, which translates to an increasing participation of the homegrown companies in the global supply chain.
“I am confident that the collaboration between YBS and Enovix will follow a similar path,” Chow added.
He said that the state, through the relevant agencies, remained committed to ensuring a versatile talent pool, supportive infrastructure and resilient industry clusters.
Also present were caretaker state Entrepreneurial Development, Trade and Industry Committee chairman Datuk Abdul Halim Hussain, Chow’s special investment adviser Datuk Seri Lee Kah Choon, InvestPenang chief executive officer Datuk Loo Lee Lian, and 88 Captains association chairman Datuk Seri Dr Ooi Eng Hock.
Story by Christopher Tan
Pix by Darwina Mohd Daud
Video by Siti Nuratikah Rahmat