#Malaysia #Semiconductor #E&R Engineering #Melaka

E&R Engineering Opens New Factory in Malaysia

E&R Engineering Corp., a leading international provider of semiconductor packaging equipment, has announced the upcoming inauguration of its new subsidiary, ER SEMICONDUCTOR (MALAYSIA) SDN. BHD., scheduled for October 13. This new facility, located in the Melaka Free Trade Zone, represents a significant step in the company's strategy to meet the growing demand for packaging materials in the Southeast Asian market.

Expanding Global Production

In response to the increasing demand for semiconductors, particularly in Southeast Asia, E&R Engineering is refocusing part of its production capacity from China to Malaysia. Notably, the Malaysian semiconductor market is anticipated to witness robust growth, projected to reach approximately $16.51 billion by 2030, supported by favorable government policies.

The new plant aims to create about 50 local jobs and enhance E&R’s supply chain capabilities for clients in the semiconductor sector as well as Outsourced Semiconductor Assembly and Test (OSAT) companies. Currently undergoing sample tests and qualification procedures, the facility is set to initiate mass production early next year.

Commitment to Localized Production

The establishment of this plant demonstrates E&R Engineering's commitment to localized manufacturing, offering rapid responsiveness to customer needs. The factory will focus on producing advanced component support tapes and high-end cover tapes, which are critical for semiconductor packaging.

Furthermore, the proximity of this facility to key customer bases allows E&R to streamline production processes, minimize delivery times, and provide high precision packaging solutions. These products are designed to protect against electrostatic discharge (ESD) and meet the evolving trends of miniaturization and chiplet integration in the semiconductor industry.

Innovative Approach to Growth

According to KS Chen, the president of E&R Engineering, ‘To address the surging demand from our customers in Southeast Asia, we are relocating part of our packaging materials production to Malaysia while simultaneously expanding our overall production capabilities. This site will also act as a regional hub for maintenance engineers specializing in semiconductor production equipment.’

The company is also focused on recruiting local talent, thus strengthening its engineering team for equipment support, which will enable immediate technical assistance and customer service tailored to the local context.

General Manager of the Malaysian plant, AK Ong, emphasized the importance of this new facility, stating, ‘The completion of our new factory allows us to be closer to our customers and provide real-time support. We remain dedicated to delivering high-quality products and meticulously controlling quality at every step of the process to build a win-win future for everyone involved.’

With the launch of this new facility, E&R Engineering is not just enhancing its production capabilities but also reinforcing its innovative spirit by fostering local collaboration and promoting growth in the semiconductor sector in Malaysia.

For more information, visit E&R Engineering.