With the accelerating demand for electric vehicles (EVs) and also the continued high demand for new motor vehicles with combustion engines, global demand for microchips remains high. For this reason, Bosch is continuing to expand its semiconductor business not only in production but also other facilities.
The company has just opened a new test centre for chips and sensors in Penang at a cost of some 65 million euros (RM322.22 million). By the middle of the next decade, it plans to invest a further 285 million euros (RM1.422 billion) at the same facility which also receives funding from the Malaysian Investment Development Authority.
One of the most advanced in Southeast Asia
Located at the Batu Kawan Industrial Park on the mainland side, the fully connected plant is one of the most advanced semiconductor test centres in Southeast Asia. Here, Bosch will immediately begin testing semiconductors that the company manufactures at its frontend in Dresden, Germany (among other locations).
“With our new semiconductor test centre in Penang, we are creating additional capacity within our worldwide manufacturing network to meet the continued high demand for chips and sensors,” said Dr. Stefan Hartung, Chairman of the Bosch Board of Management.
“Semiconductors are a decisive success factor for all Bosch business areas, and the expansion of this business is strategically very important,” he added.
Manufacturing in Penang since 1972
The first Bosch products appeared in Penang in 1923, and since 1972, the company has has had a manufacturing presence in the state as well (at Bayan Lepas).
In total, the company today has some 100,000 square metres of land available on Penang’s mainland strip. The new test centre currently covers over 18,000 square metres and by the middle of the next decade, up to 400 associates will be working there.
With the new factory and a total of 4,200 associates, Penang is now Bosch’s biggest location in Southeast Asia. Malaysia is an important hub in the global semiconductor supply chain where backend manufacturing is concerned.
Completing internal process chain
“The new test centre in Penang brings our manufacturing network closer to the companies that serve the further value chain of semiconductor manufacturing as well as to customers in this important Asian market. That shortens delivery times and routes, and it improves our competitiveness,” said Dr. Markus Heyn, member of the Bosch Board of Management and Chairman of the Mobility business sector.
“Our new test centre in Penang completes our internal process chain, especially for semiconductors from Dresden,” he added.
According to official figures, in recent years, the state of Penang has generated more than 5% of worldwide semiconductor revenue, while Malaysia is estimated to cover around 13% of global backend manufacturing.