Germany’s AIXTRON SE inks deal to build greenfield manufacturing facility in Penang

AIXTRON SE, the German provider of deposition equipment for the semiconductor industry, has concluded an agreement on greenfield manufacturing facility in Penang, Malaysia, with the Malaysian Investment Development Authority (MIDA). The duo said in a statement joint statement on Tuesday that the investment marks a significant step in AIXTRON’s global expansion strategy and reinforces Malaysia’s position as an increasingly important hub for advanced semiconductor manufacturing. AIXTRON will be building its new Malaysian plant at Bandar Cassia Technology Park, where it has obtained an 8.5-acre plot of land. This greenfield project will see the construction of an integrated facility comprising a three story office building, multiple cleanrooms and logistics areas. Being able to design the facility from the ground up has allowed extensive customization and optimization to meet the demands of manufacturing AIXTRON’s 100 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. “AIXTRON’s decision to establish this world-class facility in Penang is a powerful endorsement of Malaysia’s readiness to host complex segments of the global semiconductor value chain, “This project is a center piece of our New Industrial Master Plan 2030 ambitions; it is not just about manufacturing, but about bringing state-of-the-art front-end Metal-Organic Chemical Vapour Deposition (MOCVD) equipment technology to our shores,” said Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA. “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, “We are moving beyond assembly-centric activities to become a global hub for the critical enablers of the artificial intelligence (AI) and Electric Vehicle (EV) revolutions,” he added. According to the statement, the new facility is intended to support the rising global demand for advanced semiconductor process technologies, enabling increased production capacity, greater supply‑chain resilience and closer proximity to customers across Asia‑Pacific. It will focus on manufacturing and supporting key systems used in the production of next‑generation semiconductor devices for applications such as power electronics, advanced communication technologies, optoelectronics and emerging computing architectures. “The decision to establish a new greenfield manufacturing site in Penang reflects our long-term confidence in Malaysia as a strategic semiconductor location, “This investment allows AIXTRON to better serve our global customer base, strengthen our operational flexibility and support the continued scaling of advanced semiconductor technologies,” said Dr Felix Grawert, Chief Executive Officer of AIXTRON SE. He also said Malaysia offers a strong ecosystem, skilled talent and a clear commitment to the future of the semiconductor industry. The announcement at SEMICON Southeast Asia underscores the strategic relevance of Southeast Asia within the global semiconductor value chain. Penang, in particular, has developed into a well‑established electronics and semiconductor cluster, offering strong infrastructure, a highly skilled workforce and close collaboration between industry, academia and government. Beyond production capacity, the new facility is expected to contribute to engineering, local supplier development and workforce upskilling, supporting Malaysia’s ambition to advance from assembly‑centric activities toward higher value‑added semiconductor manufacturing and innovation. With this investment, AIXTRON further demonstrates its commitment to building a resilient, sustainable and globally balanced manufacturing footprint, while supporting customers as they address increasing performance, efficiency and sustainability requirements, said the statement. Malaysia boosts AI, semiconductor push for technological sovereignty amid global uncertainties