E&R Engineering Expands Global Operations with New Malaysian Plant Opening

E&R Engineering Corporation, listed on the Taipei Stock Exchange (TWSE: 8027), has announced the grand opening of its new subsidiary, ER Semiconductor (Malaysia) SDN. BHD., located within the free trade zone of Melaka. The official inauguration will take place on October 13, 2026, marking a key milestone in the company's strategy to strengthen its support for semiconductor packaging in Southeast Asia.

The decision to establish this new plant comes as ER Engineering aims to respond to the growing demand for semiconductor packaging solutions in the region. With the existing facilities in China continuing to see robust growth, the company strategically shifts some of its production focus to Malaysia while simultaneously expanding its overall capacity. Currently, the facility is undergoing sample testing and qualifying processes, with mass production expected to commence in early next year. This new operation will create approximately 50 jobs locally and is poised to enhance ER's supply capabilities for semiconductor and OSAT (Outsourced Semiconductor Assembly and Test) clients across Southeast Asia.

Strengthening Presence in Southeast Asia's Semiconductor Market

Malaysia holds a significant position in the global semiconductor landscape, accounting for around 13% of the worldwide backend packaging and testing capabilities. With strong governmental support, this market is projected to grow to a volume of $16.51 billion by 2030. To capitalize on this momentum and increasing regional customer demand, ER Engineering has built its facility in Phase III of the Batu Berendam free trade zone in Melaka. This facility will integrate the company’s manufacturing expertise in high-quality molded carriers and cover tapes directly into local production.

The new plant will address the needs of OSAT and semiconductor customers directly through localized manufacturing and rapid response times. By shortening lead times while maintaining high precision, excellent electrostatic discharge (ESD) protection, and robust packaging interfaces, the facility aims to support advanced packaging trends like chip miniaturization and chiplet integration.

A Focus on Innovation, Collaboration, and Growth

KS Chen, President of ER Engineering, commented, "To meet the growing customer demand in Southeast Asia, we have relocated a part of our focus for packaging materials production to Malaysia while also enhancing our capacities. This facility will serve as a local hub for ER's field technicians specializing in semiconductor equipment. We are committed to hiring local talent and building a specialized team to provide prompt, on-site technical support and customer service."

AK Ong, the factory manager in Malaysia, added, "The completion of our new facility allows us to be closer to our customers and offer real-time support. We remain dedicated to delivering the highest quality products and rigorously monitoring each quality control point to create a win-win future for all stakeholders involved."

With this expansion, E&R Engineering is not only looking to improve its operational efficiencies but is also committed to fostering innovation and collaboration within the semiconductor packaging industry in Malaysia and the broader Southeast Asian market. By establishing a local presence, the company aims to respond more swiftly to the evolving needs of its customers in this key technological sector.