BATU BERENDAM (July 7): Texas Instruments Incorporated (TI)’s potential RM5 billion investment to expand its manufacturing base in Melaka would stimulate economic growth, foster local talent, and invigorate small and medium enterprises in the state, said Melaka Chief Minister Datuk Seri Ab Rauh Yusoh. 

Ab Rauh said on Friday (July 7) that the US semiconductor giant’s plans to expand its assembly and test operations in Melaka reflects the state’s clear positioning in the global semiconductor supply chain. 

Citing a Malaysian Investment Development Authority (Mida) report, he said industry and manufacturing are the backbone of Melaka’s development, contributing about 37.2% to the state’s gross domestic product (GDP) in 2022. 

“Melaka state government is strongly supporting TI’s expansion plans, which will not only bring significant investments but also enhance the manufacturing capabilities to the state and country,” he said during his speech at the groundbreaking ceremony for TI’s new assembly and test factory in Batu Berendam, Melaka. 

Mida announced last month that TI plans to invest up to RM14.6 billion to expand its assembly and test operations in Kuala Lumpur and Melaka, with production expected to start as early as 2025.  

TI’s RM9.6 billion investment in Kuala Lumpur would create 1,300 local jobs, while the RM5 billion investment in Melaka would create 500 local jobs. 

“TI also promises job opportunities for Melaka citizens, especially our fresh graduates. I believe this is a golden opportunity that the young generation [is] looking forward to,” said Ab Rauh.  

Mohammad Yunus, senior vice president, manufacturing and operations of TI, said the new factory will be built to meet Leadership in Energy and Environmental Design (LEED) Gold Standard — one of the green building rating system’s highest levels of structural efficiency and sustainability — and that the factory's advanced equipment will reduce waste, water and energy consumption per chip. 

“The state-of-the-art factory will assemble and test millions of analog and embedded processing chips every day. These chips will be used in electronics everywhere, from the safety system in your car, to mobile phones and many other electronics [that] we use in our everyday lives. 

“The chips we will produce here will support the future growth of semiconductors in electronics, allow us to provide greater assurance of supply, and support our customers’ needs for decades to come,” he added.