DENSO MALAYSIA TO EMBARK ON RM160 MLN AUTO SEMICONDUCTOR PROJECT

KUALA LUMPUR, Feb 24 -- Denso Malaysia Sdn Bhd, a subsidiary of leading global mobility systems and components supplier Denso Corporation Japan, will invest RM160 million to venture into advanced automotive semiconductor production in Selangor.

The Malaysian Investment Development Authority (MIDA) has approved the project to produce the integrated circuit named Exposed Package (Ex-PKG), which is scheduled to begin in April.

In a joint statement today, MIDA and Denso said Ex-PKG is superior and competitive in terms of high functionality, efficient high heat dissipation, miniaturisation and cost reduction.

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“This project is also in line with the government's National Automotive Policy 2020 to develop critical components within next-generation vehicles, mobility technology and autonomous driving,” they said.

MIDA chief executive officer (CEO) Datuk Azman Mahmud said Malaysia is honoured to be selected as the country outside Japan to produce the advanced products as a result of continuous research and development. 

“Moreover, we acknowledge the operational expenditure of over RM20 million in the next five years would benefit the local business ecosystem, from insurance, legal, banking, information and communications technology as well as transportation industries. 

“Denso’s decision to further expand its presence in Malaysia has proven that the country continues to be a competitive investment location for high-value operations amidst global headwinds. This is another testament to MIDA’s efforts in attracting quality investment into Malaysia,” Azman said.

Meanwhile, Denso Malaysia managing director Tomoya Nakamura said Denso Malaysia, which was established in 1980, possesses extensive experience, skills and knowledge in the production of electronic parts. 

“It was selected to be the only production centre of semiconductors in ASEAN, outside of Japan, backed by Malaysia’s strong suppliers’ network, well-developed infrastructure and a business-friendly environment,” he said. 

According to the statement, the investment will establish fully automated machine production lines with Denso-designed manufacturing equipment and unique processing techniques that emphasise on high efficiency and high quality.

The transfer of the product knowledge will also develop the local engineering skills among its workforce, through the dedicated Denso’s ‘Hitozukuri’ — a human resource development concept. 

In addition, the introduction of fully automated production lines will accelerate the moving toward Industry 4.0 technologies, such as  Internet of things deployment, big data management and factory automation in Malaysia, the statement said. 

Denso Malaysia continues serving as the manufacturing and distribution hub that supplies to Denso in Japan and other Denso group companies across North America, China, Europe, and other regions.

The company will help promote the exporting of automotive parts out of Malaysia and contribute to the growth of the automotive industry in the country. 

-- BERNAMA