Micron Technology Inc's new centre of excellence for solid state drive (SSD) assembly and test in Batu Kawan is expected to create 1,000 high-value jobs in the electrical and electronics (E&E) sector once it is completed in 2021.
Penang Chief Minister Chow Kon Yeow said Micron would invest RM1.5 billion in Penang within the next five years to build its new facility in Batu Kawan.
"We welcome Micron, a Fortune 500 company to our family in Penang, and this will further reinforce the state’s position as the Silicon Island of Asia.
"As a family member, we assure Micron of the state's support and commitment to assist in their continued growth in Penang," he told the press conference here today.
The American semiconductor giant, which had announced its RM1.5 billion investment yesterday, aims to break ground for the new 21-hectare facility in the first half of next year and achieve full ramp-up within two years.
Chow said last year, Penang recorded the largest foreign direct investment (FDI) inflow of the Malaysian Investment Development Authority (MIDA) approved manufacturing FDI among states in Malaysia, valued at RM8.5 billion.
He said Penang was also the second top recipient of total manufacturing investment among states valued at RM10.8 billion.
"Out of the RM72 billion approved investments recorded from 2008 until June this year, RM14.4 billion or 30% were from US investors, which makes them the largest FDI contributor to the Penang economy," he said.
Meanwhile, Micron backend operations senior vice president Gursharan Singh said the reason Penang was picked for the company’s expansion was because the state was recognised as a centre of excellence for semiconductor and storage products.
"Penang offers numerous advantages, including a high-quality supply chain for electronics industry; logistics, sustainable manufacturing infrastructure; conducive business environment; access to talent and strong government support," he said.
He said the expansion in Malaysia was in line with the group’s strategy to build a scalable, agile and well positioned global capacity model.
“This greenfield investment in Penang for SSD manufacturing will enhance our NAND centre of excellence in Southeast Asia, building on our existing presence in Malaysia and Singapore, while ensuring a continued focus on better servicing customers and attracting and retaining the highest-quality talent," he said, adding the Penang facility would produce 3D advance storage and memory packages.
Micron, a US-headquartered industry leader in memory and storage solutions, employs about 34,000 workers across 17 countries worldwide.
source from The Edge Markets