#Malaysia #Semiconductor Packaging #E&R Engineering #Malacca

E&R Engineering Launches New Facility in Malaysia

E&R Engineering Corp., listed on the Taiwan Stock Exchange (TWSE: 8027), has formally announced the upcoming opening of its new subsidiary, ER Semiconductor (Malaysia) SDN. BHD., in Malacca's Free Trade Zone. This development, scheduled for October 13, aims to enhance the company's global semiconductor packaging services amidst rising demand in Southeast Asia.

Meeting Growing Demand in Southeast Asia

As part of an updated global strategy focused on expanding its packaging materials business unit, E&R Engineering is redirecting some of its production efforts from China to Malaysia. This shift is set to bolster its overall capacity while geographically broadening its operational base. The new facility is currently in the testing and qualification stage for samples, with full-scale production expected to commence in early 2027. Once operational, this plant is anticipated to create around 50 local jobs while enabling E&R to better meet the needs of semiconductor and OSAT (Outsourced Semiconductor Assembly and Test) customers in the region.

Capitalizing on Industry Growth

The Malaysian semiconductor market is projected to grow to approximately $16.51 billion by 2030, driven by strong institutional support. With about 13% of the world’s semiconductor packaging and testing capacity at stake, E&R Engineering aims to leverage this upward trend by establishing a local manufacturing presence at the Batu Berendam Free Trade Zone in Malacca. Here, the company can rapidly produce advanced carrier tapes and high-end cover tapes, catering directly to the region's semiconductor demand.

The new facility represents a significant move towards “local manufacturing with a quick response,” which is crucial for semiconductor customers. It will enable E&R Engineering to shorten delivery times while offering precision products with excellent ESD (Electrostatic Discharge) protection and robust packaging interfaces, essential for supporting trends such as chip miniaturization and chiplet integration.

A New Chapter of Innovation and Collaboration

KS Chen, the President of E&R Engineering, expressed the company’s commitment to meeting the increasing demands of Southeast Asian customers through this move. He elaborated, "By relocating part of our production for packaging materials to Malaysia, we are not only expanding our capacity but also enhancing our local operations for semiconductor packaging equipment. We are focused on hiring local talent and solidifying our team of specialized equipment engineers to provide immediate technical support and after-sales services.”

AK Ong, the General Manager of the Malaysian plant, emphasized that the new facility would allow the company to be closer to its clients, enabling real-time assistance and ensuring the highest quality standards with rigorous quality control measures at every touchpoint. The mission is to construct a mutually beneficial future for all stakeholders involved.

As E&R Engineering embarks on this significant journey, it sets the stage for a transformative impact on the semiconductor landscape in Southeast Asia, aiming to uphold a balance of rapid innovation and meticulous oversight in quality assurance as it grows in the region. For more information, visit E&R Engineering's website.