Bosch, German-based engineering and technology company, plans to invest RM1.62 billion in phases within the next decade in its operations here to strengthen the global supply chain for semiconductors.

Member of the Bosch Mobility Sector Board, Klaus Maeder said the long-term investment is a testimony to the company’s commitment towards Malaysia.

“One of the reasons why we are confident in investing heavily to set up our operations here is the existing semiconductor ecosystem, as our suppliers and many other semiconductor players are also here.

“Semiconductors are key to the success of all Bosch’s business areas and the Penang back-end site is a key component in our growth strategy in the mobility sector as we respond to the increased demand for semiconductors,” he said.

He said this during a press conference after the opening ceremony of Bosch’s Semiconductor Back-End site here yesterday.

Also present was Penang Chief Minister Chow Kon Yeow; Malaysian Investment Development Authority (MIDA) chief executive officer (CEO), Datuk Arham Abdul Rahman; special adviser to the chief minister of Penang, Datuk Seri Lee Kah Choon; and InvestPenang CEO Datuk Loo Lee Lian.

Maeder emphasised that the company chose to invest in Penang for its high level of semiconductor knowledge and skilled workforce, while the close proximity to business partners and customers here would shorten delivery times and distances for the chips.

He said the back-end site, which currently spans over 18,000 square metres, is one of Asia’s most advanced semiconductor backend sites for the final testing of its automotive chips and sensors.

The facility would systematically reinforce Bosch’s semiconductor business and manufacturing footprint to meet global chip demand.

Meanwhile, Bosch Malaysia managing director, Klaus Landhaeusser said Malaysia is an important hub in Bosch’s global semiconductor supply chain, accounting for around 13 per cent of the global back-end production.

“We are expanding the local semiconductor ecosystem further and reinforcing our commitment in Malaysia amid our 100-year celebration.

“Our new facility in Penang brings Bosch’s global manufacturing network closer to outsourced semiconductor assembly and test vendors in the region as well as to our automotive customers in the Asian market,” he added.

The new Penang facility is expected to employ up to 400 associates by mid-2030.

With a total of 4,200 associates and nearly RM400 million worth of investments in Malaysia as of Dec 31, 2022, Penang is home to the largest number of manufacturing facilities in a single country for Bosch in South-east Asia.

Source: Bernama