Rohm-Wako to invest RM910m to expand Kelantan facility

It is expected to create high-skilled jobs for over 340 Malaysians

by TMR / pic by TMR FILE

ROHM-WAKO Electronics (M) Sdn Bhd (RWEM), a major Japanese electronics maker, is expanding its electronic components facility in Kelantan with a total investment of RM910 million.

This investment is expected to create high-skilled jobs for over 340 Malaysians. It is the single biggest investment ever made by the company which uniquely positions Malaysia as a key hub for the semiconductor and automotive global value chains.

“It is noteworthy that the establishment of the manufacturing facility in Malaysia is a strategic decision by RWEM to build a long-term presence in the Asean region. Indeed, this vital expansion signifies the company’s confidence in the capability of our local talent of highly skilled engineers and technicians,” Minister of International Trade and Industry and Senior Minister Datuk Seri Mohamed Azmin Ali stated in a press release on Saturday.

Malaysian Investment Development Authority CEO Datuk Arham Abdul Rahman said the company’s expansion is poised to strengthen the country’s position in the global value chains.

The new building, which will be constructed within RWEM’s existing premise, will enable the Japanese company to respond to the strong demand for semiconductors and promote multi-site production system of analogue Large-Scale Integrations and transistors in line with the Business Continuity Management (BCM).

The construction of the new building will ultimately increase the overall production capacity by 1.5 times.

The new facility, which is expected to have a three-story building with a total floor area of 29,580 sq m, is envisaged to begin in the first quarter of this year and be completed in August 2023.

The facility will be equipped with various energy-saving technologies to reduce its impact on the environment and is expected to reduce CO2 emissions by 15%.

This will eventually strengthen the BCM system by adopting various disaster-proof measures with up-to-date technologies.

The expansion will provide capacity for additional components of Wide Line Transistor and Gate Driver Integrated Circuit, mainly used for electric vehicles and hybrid cars.

These components will also apply to the company’s existing production of discrete semiconductors such as diodes, light emitting diodes and laser diodes used in a wide range of electronic consumer products such as audio and video, TVs, laptops and mobile phones.

The investment also is in line with Malaysia’s National Automotive Policy 2020 which focuses on the development of new technologies in future mobility areas.