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E&R Engineering to open Malaysian packaging materials plant on October 13

The Taiwan-listed equipment maker said the Melaka site will run sample testing and qualification before mass production begins early next year.

E&R Engineering to open Malaysian packaging materials plant on October 13

E&R Engineering Corp., which trades on the Taiwan Stock Exchange under the ticker 8027, will hold a grand opening on October 13 for its new Malaysian subsidiary, E&R SEMICONDUCTOR (MALAYSIA) SDN. BHD., at the Melaka Free Trade Zone, the company said.

The company said it is revising its global strategy for its packaging materials business unit to meet demand in Southeast Asia. Its plant in China continues to see steady growth, and a portion of its production focus is being shifted to Malaysia while overall capacity is expanded. The new facility is undergoing sample testing and qualification, with mass production scheduled to begin early next year. It is expected to create 50 local jobs and to strengthen supply for semiconductor and OSAT customers in the region.

Malaysia accounts for about 13% of the world's backend packaging and testing capacity, and its semiconductor market is projected to reach $16.51 billion by 2030 with policy support, the company said. The plant sits in Phase III of the Batu Berendam Free Trade Zone and will make high-end Embossed Carrier Tapes and Cover Tapes locally. Local manufacturing and fast response are intended to shorten lead times and to deliver precision, electrostatic discharge protection and packaging interfaces for trends including chip miniaturization and Chiplet integration.

President KS Chen said part of the packaging materials production focus has been moved to Malaysia to address growing customer demand in Southeast Asia while capacity is expanded. He said the facility will also act as a local hub for the company's semiconductor equipment field service engineers, with hiring focused on local talent and a specialized equipment engineering team, so that technical support and after-sales service can be provided locally and immediately.

AK Ong, general manager of the Malaysia plant, said the completed facility allows the company to stay closer to customers and offer real-time support, and that it remains committed to product quality and to monitoring every quality checkpoint.