Bosch to set up new plant in Penang

KUALA LUMPUR (June 3): Robert Bosch Sdn Bhd (Bosch Malaysia) plans to build a manufacturing facility in Penang focusing on the business of semiconductor components and sensor testing.

In a statement, the technology company said the facility will be built on a 10-hectare land located in the Batu Kawan Industrial Park.

The construction is scheduled to begin in 2021, to be completed in 2023, and the facility will primarily focus on the final testing of components such as semiconductors used in airbag systems or engine control units manufactured at Bosch Automotive Electronics’ fab in Dresden, Germany.

It will also house research and development (R&D) and training facilities.

“With the long-term forecasts for growth of semiconductor component quantities, coupled with the front-end production in Bosch’s Dresden facility in Germany, capacity expansion is required for the back-end production which is the final testing phase of semiconductors and sensors.

"This new site is also intended to strengthen the mature ecosystem for the semiconductor industry here in Penang,” said managing director of Bosch Malaysia, Simon Song today, in a joint statement with the Malaysian Investment Development Authority (MIDA) and InvestPenang, the State agency for promotion of investment.

MIDA’s chief executive officer Datuk Azman Mahmud said Bosch’s commitment in complementing Malaysia’s electrical and electronics ecosystem is a true reflection of the company’s continued confidence in Malaysia as a preferred destination for long-term growth.

“This project will also serve as a catalyst in developing a higher level of expertise through the adoption of Industry 4.0 and production automation in the industry,” Azman said.

Meanwhile, Penang Chief Minister Chow Kon Yeow said Bosch’s new investment ventures reflects the company’s confidence in its technology for the future.

Penang is already home to three existing Bosch manufacturing sites and R&D offices.

Robert Bosch (M) Sdn Bhd, Robert Bosch Power Tools Sdn Bhd and Robert Bosch Automotive Steering Sdn Bhd are the producers of car multimedia systems, power tools and automotive steering, respectively.