Ferrotec to set up manufacturing subsidiary in Malaysia
Japanese technology company, Ferrotec Holdings Corporation, plans to invest USD 25 million to establish a manufacturing subsidiary named Ferrotec Manufacturing Malaysia (FTMM).
Recently, major companies in the semiconductor field have been making inroads into the Southeast Asian region one after another. Ferrotec in turn established sales subsidiaries in Malaysia and Singapore to increase its client base – potential customers in these countries however expected that the company would establish a production site in the region.
”Accordingly, we considered that by establishing a production site in these countries, the company would be able to meet customer needs and expand our business further. In addition, we recognise it as the best opportunity to acquire the abilities to develop a customer support system and establish a position as a global leader in the manufacturing and assembly of cutting-edge materials in the semiconductor manufacturing equipment field,” the company writes in a press release.
Ferrotec says that the company researched multiple candidate areas and concluded that Kulim Hi-Tech Park in Kedah, Malaysia would be the most appropriate, while considering land costs, size and logistics.
The company says that it now needs to establish and register a new company – before it can obtain licenses and approvals concluding a contract for land lease, and constructing the factory in Malaysia.
The new factory will focus on metal processing, robot assembly, processing and production of quartz and ceramics, and parts cleaning. All and all the company says that it will invest USD 25 million in the project.