Bosch today officially opened one of Asia’s most advanced semiconductor backend sites in Penang for the final testing of its automotive chips and sensors.
The company said they are planning to invest around RM1.62 billion in the site until mid-2030.
With the opening, they continue 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. 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. We chose to invest 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.
Member of the Bosch mobility sector board responsible for operations Klaus Maeder
According to the company, the new Penang facility is expected to employ up to 400 associates by mid 2030.
With a total of 4,200 associates and nearly RM400 million investments in Malaysia, as of December 31, 2022, Penang is home to the largest number of manufacturing facilities in a single country for Bosch in Southeast Asia.
The first of its kind in the region
Bosch says the plant in Penang will be focused on the backend where it will be responsible for the final testing of chips manufactured at Bosch’s lab in Dresden, Germany.
They mentioned that the site has a land area of around 100,000 square meters – the first of its kind in Bosch’s Southeast Asia region.
Meanwhile, the semiconductor backend plant which spans around 18,000 square metres will house clean rooms, office spaces and laboratories for quality assurance and manufacturing.
Penang On its Way To Becoming the Silicon Valley of the East
Penang’s Caretaker Chief Minister Chow Kon Yeow said Bosch’s close relationship with the state will accelerate Penang’s vibrant electrical and electronic (E&E) ecosystem development, anchoring its status as the Silicon Valley of the East, and ensuring beneficial economic spillovers for the country.
Penang is delighted to house Bosch’s semiconductor backend site at Batu Kawan Industrial Park, which is the group’s fourth facility in the state, following the automotive electronics, power tools, and automotive steering manufacturing plants.
Penang’s Caretaker Chief Minister Chow Kon Yeow
a key player in the global semiconductors market
Bosch says Malaysia’s solid reputation as a key investment destination for the semiconductor industry is built on decades of manufacturing excellence and industrial experience, intellectual property (IP) protection, ease of doing business, dynamic talent pool, robust infrastructure, and strategic location.
They cited a local report naming Malaysia as one of the world’s 10 largest producers of semiconductor and electronic products, accounting for approximately 7% of the world’s semiconductor trade.
Bosch systematically expanding its semiconductor activities
The company views Malaysia as an important hub in their global semiconductor supply chain as the country covers around 13% of the global backend production.
We are further expanding the local semiconductor ecosystem and reinforcing our commitment in 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.
Bosch in Southeast Asia Regional President Klaus Landhaeusser
With the addition of an advanced backend site in Southeast Asia, the company is completing its internal process chain especially for the semiconductors manufactured in Dresden, Germany.
Bosch also carry out the final testing of its semiconductors for the most part in Reutlingen, Germany, Suzhou, China, Hatvan, Hungary, as well as Malaysia.
