THE INAUGURATION OF BOSCH SEMICONDUCTOR BACK-END SITE
SPEECH BY THE CHIEF MINISTER OF PENANG, YAB TUAN CHOW KON YEOW
FOR THE INAUGURATION OF BOSCH SEMICONDUCTOR BACK-END SITE
1 August 2023
Batu Kawan, Penang
Good morning to all of you.
I am most pleased to be here today for the inauguration of Bosch’s semiconductor back-end site in Penang.
I would also like to extend my heartiest congratulations to Bosch on this momentous occasion and on the Group’s 100th anniversary in Malaysia!
It gives me great pride to acknowledge the fact that Bosch is one of the pioneer investors in Penang which established your manufacturing presence in this Silicon Valley of the East since 1972. We deeply appreciate your invaluable contribution towards Penang which spearheaded our industrialisation half a century ago.
Fast forward to today, Penang is delighted to house your semiconductor back-end site at Batu Kawan Industrial Park. This is the esteemed Group’s fourth facility in the state, following the automotive electronics, power tools, and steering system manufacturing plants.
This highly connected facility is the final testing phase for components manufactured at Bosch Automotive Electronics’ fab in Dresden, Germany. Built from scratch following a 25-acre land purchase agreement with the state government back in 2020, this back-end facility is one of the key nodes in Bosch’s systematic expansion of its global semiconductor operations.
Ladies & Gentlemen,
This latest facility in Penang affirms the strong confidence of Bosch in our ecosystem’s capability to fulfil the stringent requirements in the automotive sector.
The Group’s sustained confidence augurs well for the state’s development, thus encouraging us to strive not only harder in what we do well but also greater in our niche area.
Hence, I am confident for Bosch’s investment project to deepen the state’s engineering expertise in automotive semiconductor industry, while creating greater opportunities for our local supply chain and of course, job opportunities for local talents.
Ladies & Gentlemen,
The significance of Penang on the global scale is well attested, proven by our significant role in the E&E industry, which accounted for over 5 percent of the global semiconductor sales over the past few years.
As the economic powerhouse of Malaysia, Penang topped the nation's list in 2021 with export value of RM354 billion recorded.
The external trade momentum has persisted into 2022, reaching an all-time high of RM463 billion, representing 30 percent of the country’s total. In particular, 74 percent of the said amount is contributed by E&E, represented nearly 60 percent of the country’s E&E total.
In terms of investment performance, the state has garnered RM13.7 billion in total approved manufacturing investments in 2022, of which foreign direct investments (FDI) contributed 71 percent of the total investment inflows. In the first quarter of 2023, Penang is the second highest contributor for the country’s approved manufacturing investments. The RM3.3 billion recorded in January to March 2023 comprises 35 manufacturing projects, which is estimated to create 2,217 new job opportunities in the state.
While underlying technologies such as 5G and IoT continue to mature, there will be an uptake in electrification and intelligent empowerment across various industries.
This provides the momentum for steady growth in the global semiconductor industry and, therefore, the global semiconductor industry is expected to reach USD1 trillion by 2030.
Along with technology advancement, the adoption of electric vehicles (EVs) and advanced driver-assistance systems (ADAS) will substantially increase the semiconductor content in vehicles. This promising trend bodes well for the automotive semiconductor market. I am pleased that Penang’s well-developed ecosystem is recognized by Bosch, the leading manufacturer of semiconductors for automotive applications.
The State, via InvestPenang and other relevant state agencies, is committed to provide continuous facilitation and utmost support for our investors.
Moreover, we will elevate Penang’s liveability stature and remain dedicated to developing future-proof infrastructure and ramping the talent supply.
All of which are poised to ensure a sustainable investment ecosystem in Penang.
I would also like to take this opportunity to express my appreciation to the Malaysian Investment Development Authority (MIDA), InvestPenang and Penang Development Corporation (PDC) for your synergistic efforts in engaging investors and facilitating project implementations.
In closing, my heartiest congratulation once again to Bosch. We look forward to maintaining this close relationship and working together to accelerate Penang’s vibrant E&E ecosystem development, anchoring our status as the Silicon Valley of the East, and ensuring beneficial economic spillovers for Malaysia.
Thank you.