From Malaysia to the world; Bosch opens new automotive semiconductor plant in Penang, totalling RM 1.8 billion
Sanjay · Aug 1, 2023 12:37 PM
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Today, (1-Aug 2023) Bosch has officially opened the group's newest facility in Penang, this time being a state-of-the-art semiconductor backend site. This plant, covering 100,000 square metres, will primarily focus on the final testing of automotive chips and sensors produced at Bosch's fab in Germany.
It's also the first plant in Bosch's South East Asian business to be a full 'front-end' and 'back-end' capable facility; the former meaning the manufacturing of wafers, while the latter referring to their packaging and testing.
At the new Bosch semiconductor backend site in Penang, chips are separated from the wafers, assembled, and tested
Bosch sees Malaysia as a crucial part of its global semiconductor supply chain, covering about 13% of the global backend production.
With the company currently conducting most of its semiconductor testing in Germany, China, Hungary, the addition of this Penang facility brings Bosch closer to its outsourced semiconductor assembly and test vendors (OSATs) in the region and its Asian automotive customers.
Closer look at the SMA and SMI chips tested here. The former (acceleration sensor) is used in passive safety (airbag deployment, rollover detection), while the larger chips (inertial sensor) are required to make ACC work, among other things
Located in Batu Kawan, this sprawling facility tests chips and sensors for use in the automotive industry; namely in the electronic control units (ECU) for airbags, electronic stability control (ESC), parking assistance, and for use in the ECU of both electric and internal combustion engine powertrains.
"Semiconductors are key to the success of all Bosch’s business areas. The Penang backend site is a key component in our growth strategy in the mobility sector as we respond to the increased demand for semiconductors,” said Klaus Maeder, member of the Bosch mobility sector board responsible for operations.
“We chose to invest in Penang for its high level of semiconductor knowledge and skilled workforce. The proximity to business partners and customers is another advantage, as it will shorten delivery times and distances for the chips,” he continued.
The company has so far invested EUR 65 million (~RM 322 million) into the plant, with a further planned investment of EUR 285 million (~RM 1.4 billion) by the middle of the next decade.
Housing clean rooms, office spaces, and multiple laboratories for quality assurance and manufacturing, this semiconductor site is Bosch's fourth in the state - following automotive electronics, power tools, and automotive steering manufacturing plants.
Malaysia currently accounts for around 7 percent of the world's semiconductor trade. This new site is expected to employ up to 400 employees by the mid-2030s, directly contributing to Penang as home to the largest number of Bosch manufacturing facilities in Southeast Asia.
With humble beginnings collecting diecast models and spending hours virtually tuning dream cars on the computer, his love of cars has delightfully transformed into a career. Sanjay enjoys how the same passion for cars transcends boundaries and brings people together.
