OFFICIAL SIGNING CEREMONY OF MANUFACTURING SUPPLY AGREEMENT (MSA) BETWEEN YBS INTERNATIONAL BERHAD, PENANG (YBS) AND ENOVIX CORPORATION, USA (ENOVIX)
SPEECH BY YAB TUAN CHOW KON YEOW
THE CHIEF MINISTER OF PENANG
OFFICIAL SIGNING CEREMONY OF MANUFACTURING SUPPLY AGREEMENT (MSA) BETWEEN YBS INTERNATIONAL BERHAD, PENANG (YBS) AND ENOVIX CORPORATION, USA (ENOVIX)
1ST AUGUST 2023 | E&O HOTEL, PENANG
Good afternoon.
I am pleased to be here for the official signing ceremony of the Manufacturing Supply Agreement (MSA) between YBS International Berhad, a Penang-based Electrical & Electronic (E&E) company, and Enovix Corporation, a US-based advanced silicon battery manufacturer.
On behalf of the Penang State Government, I am delighted to welcome each and every one of you to Penang, particularly Mr. Ajay Marathe and his team from the United States (US).
Dubbed as the Silicon Valley of the East, Penang is proud that our well-developed industrial ecosystem is recognised by leaders across the E&E industry. I am delighted to share that today’s signing agreement entails the setting up of Enovix’s second plant located in an existing YBS building, at the Penang Science Park.
This project involves the manufacturing of advanced silicon anode batteries designed by Enovix to supply to their customers. Known as Fab-2, this plant will be Enovix latest addition to the existing site in the US. Housing the company’s first high volume production line, this facility is slated to produce more than 9 million batteries annually when fully ramped.
Accordingly, we are truly excited to welcome Enovix to be part of the state’s ecosystem. Being the leader in the design and manufacture of next generation silicon batteries, Enovix’s revolutionary technology and state-of-the-art offerings provide a clear opportunity for Penang to gain in terms of knowledge sharing and skillset uplift going forward.
Ladies & gentlemen,
Despite being the second smallest state in Malaysia, Penang is one of the country’s key contributors for investment inflows and external trade. Having built a solid reputation after 50 years of industrial excellence, Penang has successfully transformed from a cluster of low value-added manufacturing operations, to a thriving, high-technology industrial hub.
As the economic powerhouse of Malaysia, Penang has demonstrated its significance in the E&E sector by constantly contributing over 50% of the country’s E&E exports over the past five years. In 2022, Penang’s export climbed 30% year-on-year, reaching an all-time high of RM463 billion, which represented 30% of the country's 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% of the total investment inflows. In the first quarter of 2023, Penang is the second highest contributor for the country’s approved manufacturing investments, with RM3.3 billion recorded.
Penang’s commendable performance speaks to the robust local ecosystem the state possesses, comprising of multinationals (MNCs), large local corporations (LLCs) and small-medium enterprises (SMEs). It is worth noting that the MNCs have played a significant role in developing the local capabilities, which translates to an increasing participation of the homegrown companies in the global supply chain. I am confident that the collaboration between YBS and Enovix today will follow similar path.
Ladies & gentlemen,
With the escalating pace of technological evolvement, the state recognizes the importance of agility and resiliency to ensure that the latest technology can be brought to market efficiently and at a timely manner. Cognizant of that, Penang continues to uphold our competitive edge by strengthening the existing industry clusters, while making significant progress in our infrastructure and workforce development to support the industry's growth.
The state, via InvestPenang and other relevant state agencies, remains committed in ensuring a versatile talent pool, supportive infrastructure and resilient industry clusters. These are among the imperatives for effective supply chain management and sustained competitiveness, all of which are believed to offer a competent platform for all industry players to scale and thrive.
Before I end, I would like to take this opportunity to express the state government’s appreciation to the Ministry of Investment, Trade, and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) for their continuous support towards Penang’s efforts in sustaining our position as a preferred location for investors.
Once again, my heartfelt congratulations to YBS and Enovix for the MSA signing. I wish both companies continuous growth and success.
Thank you.