Aixtron To Build €40M Semiconductor Site In Malaysia


The new facility will produce selected 100mm, 150mm, and 200mm semiconductor products from Aixtron’s portfolio.

German semiconductor equipment manufacturer Aixtron has entered into an agreement with the Malaysian Investment Development Authority (MIDA) to establish a €40 million ($47 million) greenfield semiconductor production facility at Bandar Cassia Technology Park in Penang, Malaysia.

Scheduled to begin operations in spring 2027, with initial product shipments expected in the latter half of the year, the site will mark Aixtron’s first manufacturing expansion in Malaysia.

The new facility will produce selected 100mm, 150mm, and 200mm semiconductor products from Aixtron’s portfolio. According to the company, the investment will strengthen production capacity and improve supply chain resilience for customers throughout the Asia-Pacific market.

The initiative supports MIDA’s 2030 industrial strategy, which focuses on attracting high-value semiconductor investments, generating skilled employment opportunities, and positioning Malaysia as a leading regional technology centre.

Demand for advanced semiconductors continues to rise across industries such as electronics, telecommunications, optoelectronics, and artificial intelligence. Market forecasts estimate Malaysia’s semiconductor sector will grow from $10.85 billion in 2025 to $16.51 billion by 2030.

Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, stated that Malaysia is evolving “beyond assembly-centric activities” and aims to become “a global hub for the critical enablers of the AI and electric vehicle (EV) revolutions.”

Malaysia also reported strong investment growth in 2023, recording RM329.5 billion ($83 billion) across the services, manufacturing, and primary industries sectors — representing a 23% year-on-year increase.

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