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

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

“AEM’s new manufacturing plant in Penang lends credence to our conduciveness as a global semiconductor hub. With half a century of industrialisation in its DNA, Penang has navigated numerous up and down cycles and has emerged stronger from each,” said  Right Honourable Chow Kon Yeow, Chief Minister at Penang. “Experiencing an upward trend in its exports, Penang contributed an average 29% of Malaysia’s export, and 58% of the nation’s trade surplus over the past five years.”

Yeow added: “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 machinery and equipment industry amounted to a total of RM7.3 billion from 2020 to September 2022, representing 57% of the country’s total.”

“Riding on the prolific growth of advanced technologies, I am confident that Penang will be benefiting 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,” said the Chief Minister.

Lim Bee Vian, Deputy CEO at 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 customised testing solutions for the electronics and semiconductor industries.”

She added: “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.”

“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,” said Chandran Nair, CEO at AEM. “We ensure our customers’ success by continuing to grow our capabilities to deploy quickly at scale. Together with our centre of excellence in Singapore, I believe we will solidify our position as a hub in the region.”

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

As a hub in the semiconductor global supply chain, Penang accounts for 80% of Malaysia’s contribution to the global backend semiconductor output and over 5% of the world’s semiconductor sales over the last few years.

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