AEM, a global leader in test innovation, celebrated the grand opening of its new manufacturing plant in Penang, Malaysia. The new plant comprises a 365,000-sqft area for assembly, quality assurance (QA), warehouse, and R&D lab. It was designed to develop advanced testing and handling equipment.

This expansion comes on the heels of AEM’s highest recorded nine-month revenue in history for 9M2022 at SGD$ 747 million. Also, the new plant will allow AEM to tap into the region’s growth opportunities and talents. It also brings its operations closer to existing and new customers.

“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 center of excellence in Singapore, I believe we will solidify our position as a hub in the region,” said Chandran Nair, CEO of AEM.

Solid Support from Malaysian Government

The grand opening of the plant was officiated by the Chief Minister of Penang, Right Honorable Mr. Chow Kon Yeow; the Deputy CEO Investment Development of MIDA, Ms. Lim Bee Vian; AEM’s 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, Mr. Shivakumar Nair, together with other dignitaries. Additionally, almost 400 employees of AEM joined the celebration with the company’s leadership team.

Penang as a Global Semiconductor Hub

“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 exports and 58 percent of the nation’s trade surplus over the past five years,” said Right Honorable Mr. Chow Kon Yeow, Chief Minister of Penang

“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 the machinery and equipment industry amounted to a total of RM7.3 billion from 2020 to September 2022. The amount represented 57 percent of the country’s total,” he continued, while congratulating AEM for bringing the expansion plan to fruition.

“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,” added the Chief Minister.

Ms. Lim Bee Vian, Deputy CEO, Investment Development of MIDA said, “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.”

“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,” she added.

Mainly, Malaysia is an important market as it is strategically positioned in the heart of Southeast Asia. In particular, the E&E industry contributes significantly to Malaysia’s GDP growth, export earnings, investment, and employment. Also, it 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. 

Specifically, Penang is a hub in the semiconductor global supply chain. It accounts for 80 percent of the nation’s contribution to global backend semiconductor output. Also, Penang contributes over 5 percent of the world’s semiconductor sales over the last few years.