On Oct. 24, MKS Instruments Inc. (NASDAQ: MKSI), a global leader in technology solutions, has broken ground on a cutting-edge semiconductor manufacturing hub in Penang, Malaysia, supported by the Malaysian Investment Development Authority (MIDA) and InvestPenang. The $100 million "super center" aims to meet growing regional and global demand for wafer fabrication equipment, reinforcing Penang's role in the semiconductor supply chain.

Located on a 17-acre site in Batu Kawan, the 500,000-square-foot facility is scheduled to be completed in phases, with the first phase targeted for 2026. Once operational, the center will employ around 1,000 people, supporting MKS's wafer fabrication and semiconductor manufacturing operations. The strategic investment enhances MKS’s global footprint and aligns with Malaysia’s New Industrial Master Plan 2030, which seeks to boost high-skilled job creation in advanced industries.

"Building in Penang places us closer to our customers, suppliers, and an advanced tech infrastructure," said MKS CEO Dr. John T.C. Lee, highlighting Penang’s established semiconductor ecosystem and skilled labor pool. This expansion aims to strengthen MKS’s capabilities across semiconductor applications, ensuring proximity to key stakeholders.

ADUN Bukit Tambun and InvestPenang Director YB Goh Choon Aik noted Penang’s reputation as “the Silicon Valley of the East,” celebrating five decades as a hub for electronics and industrial innovation in Southeast Asia. The groundbreaking ceremony also featured Malaysia's Minister of Investment, Trade, and Industry, YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, who lauded the project as a symbol of Malaysia’s dedication to attracting foreign investment in high-tech sectors.

MIDA reported that Malaysia’s machinery and equipment sector continues to expand, with approved investments worth RM2.8 billion (US$595 million) in the first half of 2024 alone, creating over 3,500 jobs. This new super center by MKS Instruments is set to further propel Malaysia’s manufacturing sector, making the country a key player in the global semiconductor supply chain.