TI Eyes Two New Factories in Malaysia

Texas Instruments Incorporated has announced plans to expand its internal manufacturing footprint in Malaysia. Accordingly, the expansion covers two new assembly and test factories in Kuala Lumpur and Melaka.

Together, these new investments will support TI’s plan to bring 90% of its assembly and test operations internal by 2030 to have greater control of supply.

YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI) said, “We are encouraged by Texas Instruments’ continued confidence in the Malaysian investment ecosystem. TI’s plans to expand its assembly and test operations reflect Malaysia’s clear positioning in the global semiconductor supply chain. (At the same time) complementing our New Investment Policy and New Industrial Master Plan’s focus on attracting hi-tech, high value investments to support our increasingly digitized global and domestic economies. Further, TI’s expanded investment footprint in our country will not only bolster domestic value chains, but also create knowledge-based, high-income employment opportunities for Malaysians.”

Rendering of early plans for Texas Instruments’ new assembly and test factory, next to the company’s existing assembly and test factory, in Kuala Lumpur, Malaysia. (Image Credit: Texas Instruments)

Long-Term Strategy

The timing of the expansion also aligns with Malaysia’s broader strategy of strengthening the semiconductor industry ecosystem and driving economic growth.

Datuk Wira Arham MIDA, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), reaffirmed MIDA’s commitment to facilitating TI’s expansion and fostering a collaborative ecosystem. Particularly, Arham said MIDA is supporting TI’s expansion plans, which will not only bring significant investments but also enhanced analog and embedded processing manufacturing capabilities to the country.

“This partnership further solidifies Malaysia’s position as a leading hub in the region for semiconductor innovation.”

The announced expansion reflects the joint efforts of TI, the Malaysian government, especially MITI and MIDA to reinforce Malaysia’s standing in the semiconductor industry. Accordingly, these initiatives aim to drive economic growth, attract investments, and foster knowledge exchange, contributing to the country’s overall development.

Rendering of early plans for Texas Instruments’ new assembly and test factory, next to the company’s existing assembly and test factory, in Melaka, Malaysia. (Image Credit: Texas Instruments)

Yogannaidu Sivanchalam, Vice President, Assembly and Test Manufacturing Operations at TI said, “These investments are part of TI’s long-term strategy to expand our internal manufacturing capacity to support the increasing need for semiconductors and provide greater assurance of supply. TI is proud to have been operating in Malaysia for more than 50 years, and our decision to expand our back-end manufacturing is a reflection of the talented and growing team in Malaysia that will be critical to TI’s future.”

Expanding in Kuala Lumpur

Recently, TI purchased the building next to its existing assembly and test factory in Kuala Lumpur that sits on 18 acres of land. With a potential investment of up to MYR 9.6 billion, the company plans to convert the building into an assembly and test factory with more than 1 million square feet of cleanroom space. Construction will start later this year, with production to begin as early as 2025. The new factory will connect to the company’s existing factory and create nearly 1,300 additional local jobs at full build.

Construction Underway in Melaka

TI is also constructing a new, six-level assembly and test factory next to its existing Melaka assembly and test factory. The new factory will include more than 400,000 square feet of cleanroom space and will connect to TI’s existing factory. With a potential investment of up to MYR 5 billion, this new factory will support up to 500 local jobs at full build. Furthermore, its production will begin as early as 2025.

Next Era of Assembly, Test in Malaysia

At full production, TI’s new, state-of-the-art factories in Malaysia will feature advanced factory automation to assemble and test hundreds of millions of analog and embedded processing chips daily that will go into electronics everywhere – from renewable energy sources to electric vehicles.

At both factories, environmentally responsible construction methods that emphasize an energy-efficient design will be used to meet one of the Leadership in Energy and Environmental Design (LEED) building rating system’s highest levels of structural efficiency and sustainability: LEED Gold. Advanced equipment in the factories will reduce waste, water and energy consumption per chip, further demonstrating TI’s commitment to responsible, sustainable manufacturing.

Investing in Internal Manufacturing

TI has a long history of globally owned, regionally diverse internal manufacturing operations. Furthermore, the company has 15 manufacturing sites worldwide, including wafer fabs, assembly and test factories, and bump and probe facilities.

With plans to manufacture more than 90% of its products internally by 2030, TI has the ability to provide customers with geopolitically dependable capacity for decades to come.