DENSO Embarks on RM160 Million Advanced semiconductor Production in Malaysia
BANGI, Malaysia (Feb. 24, 2021) – DENSO MALAYSIA Sdn. Bhd., a subsidiary of DENSO Corporation, Japan, a leading mobility systems and components supplier, will be expanding its production capacity in Selangor, Malaysia. The RM160 million investment project has been approved by the Malaysian Investment Development Authority (MIDA) and is scheduled to commence in April 2021. DENSO MALAYSIA products range from air-conditioning systems, radiators, engine control units, airbag electronic control units, electric power steering and other products.
In recent years, electronic controls have been increasingly adopted in various vehicle systems. The semiconductors’ performance evolves continuously to enhance the safety standards of growing demands for semiconductors to full autonomous electric vehicles.
Dato’ Azman Mahmud, Chief Executive Officer of MIDA, expressed “We are honoured to be selected as the country outside Japan to produce the advanced products as a result of continuous research and development (R&D). 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 communication technologies (ICT) as well as transportation industries.”
“DENSO’s decision to further expand their 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”, Dato’ Azman stressed.
DENSO has more than 40 years of experience in manufacturing in-vehicle semiconductors. “Established in 1980, DENSO MALAYSIA 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.” said Tomoya Nakamura, Managing Director of DENSO MALAYSIA.
DENSO MALAYSIA will be venturing into the production of automotive semiconductors, ASIC named “Exposed Package (Ex-PKG)”, which is superior and competitive in terms of high functionality, efficient high heat dissipation, miniaturisation and cost reduction. This project is also in line with the Government's National Automotive Policy (NAP) 2020 to develop critical components within Next-Generation Vehicles, mobility technology and autonomous driving.
The investment will establish fully automated machine production lines with DENSO-designed manufacturing equipment and unique processing techniques that emphasize 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 (human resource development)” concept. In addition, the introduction of fully automated production lines will accelerate the moving toward Industry 4.0 technologies, such as IoT deployment, big data management and factory automation in Malaysia.
DENSO MALAYSIA continues serving as the manufacturing and distribution hub that supplies to DENSO in Japan and other DENSO group companies covering North America, China, Europe, and other regions. DENSO will help promote the exporting of automotive parts out of Malaysia and contribute to the growth of the automotive industry in the country.
DENSO is a US$47.6 billion global mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO’s 200 global facilities produce thermal, powertrain, mobility, electrification, and electronic systems and create jobs that impact changes in world mobility. The company’s 170,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 9.9 percent of its global consolidated sales on research and development (R&D) in the fiscal year ending March 31, 2020. For more information about global DENSO, visit https://www.DENSO.com/global.
MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.