KUALA LUMPUR (Aug 1): Bosch has officially opened one of Asia's "most advanced semiconductor back-end sites" in Penang for the final testing of its automotive chips and sensors.

In a statement on Tuesday (Aug 1), InvestPenang said the supplier of technology and services intends to invest around €350 million (RM1.62 billion) in the site.

It said with the opening, the company continues to systematically reinforce its semiconductor business and manufacturing footprint to meet global chip demand.

Klaus Maeder, Bosch's mobility sector board member responsible for operations, said semiconductors are key to the success of all of Bosch’s business areas.

“The Penang back-end site is a key component in our growth strategy in the mobility sector, as we respond to the increased demand for semiconductors.

“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,” said Maeder.

InvestPenang said with a land area of 100,000 square metres, the facility in Penang is the first of its kind for Bosch in Southeast Asia.

It will primarily focus on the final testing of chips manufactured at Bosch’s fab in Dresden, Germany.

The new Penang facility is expected to employ up to 400 associates by mid-2030.