Bosch to set up its 1st chip testing lab in Southeast Asia

08, Jun. 2020

(Photo courtesy of Bosch Malaysia)
(Photo courtesy of Bosch Malaysia)

KUALA LUMPUR, NNA – German auto parts giant Robert Bosch GmbH will establish its first semiconductor testing center in Southeast Asia in Penang, Malaysia, home to the largest number of its manufacturing facilities in a single country in the region.

Robert Bosch Sdn. Bhd. has signed a 10-hectare land purchase agreement with Penang Development Corp., the Penang state government’s development agency, to build a final testing center for components manufactured at Bosch Automotive Electronics’ factory in Dresden, Germany, it said last Wednesday.

The construction will begin in 2021 for scheduled completion in 2023 in the Batu Kawan Industrial Park in Penang.

The components comprise semiconductors used in airbag systems or engine control units, among other items. The plant will also house research and development as well as training facilities, according to its Malaysian arm’s statement.

The local arm plans to employ some 400 workers. It did not disclose the investment sum.

On the back of the long-term growth forecast for semiconductor component quantities, “capacity expansion is required for the back-end production, which is the final testing phase of semiconductors and sensors,” Simon Song, managing director of Bosch Malaysia, said.

Bosch’s automotive electronics division, headquartered in Reutlingen, Germany, has also components testing facilities there and in the eastern Chinese city of Suzhou.

Malaysia contributes 10 percent of back-end semiconductor output globally, of which 8 percent is contributed by Penang, according to the statement.

In Penang, Bosch has three manufacturing arms providing multimedia systems, power tools and automotive steering for cars, with more than 4,500 employees.