Belgian microelectronics vendor Melexis has opened its largest wafer testing facility in Malaysia as the company seeks to meet increasing demand for semiconductors in the Asia-Pacific region.
The new facility will host semiconductor wafer test equipment that will be used to test integrated circuits like edge sensors and edge drivers used in applications such as mobility, sustainability, robotics and health areas.
The facility, located in Kuching, Sarawak province, will be located next to X-FAB’s wafer foundry, one of Melexis’ key suppliers, to help streamline logistics and help reduce the ecological footprint, the company said.
The four-story, 4,500 square meter facility is its largest factory globally, designed with a solar installation that generates 30,000 kWh per month to minimize the environmental footprint.
The facility is designed with future expansions in mind to scale and adapt as demand for testing continues to grow, Melexis said.
Why it matters
Much like other regions globally, Malaysia is bolstering its home-grown microelectronics supply chain. Not only does the country see the economic ramifications of boosting semiconductor and back-end testing facilities but it will also help balance supply chain issues in the country if another macroeconomic pandemic (like COVID-19) happens or in case of geopolitical events.
Earlier this year, Malaysia said it would be investing more than $100 billion and training 60,000 engineers to woo companies to build new facilities in the country. The governmental effort is designed to turn the nation into a chipmaking hub.
The southeast Asian country is looking to join the U.S., Japan, Canada and Europe in increasing semiconductor manufacturing, which is forecast to grow more than 5% in the next decade, according to the Semiconductor Industry Association (SIA).
Currently, Malaysia accounts for about 13% of the semiconductor test and packaging market and the region already boasts numerous major chipmakers with fabs and R&D facilities.
In 2024, Infineon made plans to expand its silicon carbide (SiC) fab in Kulim, Malysia. Last year, Micron invested $1 billion to expand its Batu Kawan assembly and test factory and Bosch also opened up a test center in Penang, Malaysia, back in August of 2023. Intel is also expanding its 3D advanced packaging facility in the country with a $7 billion investment.
In May, Google plans to invest $2 billion in Malaysia to develop its first data center and Google Cloud in the region. This would help the overall goals to boost AI capabilities and other advanced technologies in the country.
