Malaysian Investment Development Authority (MIDA) inked an agreement with AIXTRON SE, a provider of deposition equipment for the semiconductor industry, to build a new greenfield manufacturing facility in Penang at SEMICON Southeast Asia 2026.

In a joint statement yesterday, AIXTRON SE chief executive officer Dr Felix Grawert said the decision to establish a site in Penang reflects the company’s long-term confidence in Malaysia as a strategic semiconductor location.

“This investment allows AIXTRON to serve our global customer base better, strengthen our operational flexibility and support the continued scaling of advanced semiconductor technologies,” Grawert said.

AIXTRON will build a plant at Bandar Cassia Technology Park, where it has obtained 8.5 acres to build an integrated facility comprising a three-storey office building, state-of-the-art cleanrooms and dedicated logistics areas, the statement said.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said AIXTRON’s decision is a powerful endorsement of Malaysia’s readiness to host complex segments in the global semiconductor value chain.

“The spillover effects will be profound, creating a significant number of high-tech jobs where our local talent will have numerous opportunities for highly skilled technical roles, while simultaneously integrating our local vendors into a global elite supply chain,” Sikh Shamsul said.

“Malaysia is moving beyond assembly-centric activities to become a global hub for the critical enablers of the artificial intelligence and electric vehicle revolutions,” he said.

The statement said designing the facility from the ground up has enabled extensive customisation and optimisation to meet the demands of manufacturing AIXTRON’s 100 millimetre (mm), 150 mm and 200 mm products in a highly efficient manner.

“The modular design will provide flexibility and enable stepwise expansion in line with future market demand,” the statement said.

The new facility aims to support rising global demand for advanced semiconductor process technologies. It will help to raise production capacity, provide greater supply-chain resilience and closer proximity to customers across Asia-Pacific, the statement said.

The facility will focus on manufacturing and supporting key systems to produce next-generation semiconductor devices for applications such as power electronics, advanced communication technologies, optoelectronics and emerging computing architectures, the statement said.