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E&R Engineering Corp., an international provider of semiconductor packaging equipment, announced the upcoming grand opening of its new Malaysian subsidiary—E&R SEMICONDUCTOR (MALAYSIA) SDN. BHD.—at the Melaka Free Trade Zone on October 13.
To meet surging Southeast Asian demand, E&R Engineering is upgrading its global strategy for the packaging materials business unit. While its plant in China continues to experience steady business growth, E&R is strategically shifting a portion of its production focus to Malaysia while expanding overall capacity. The new facility is currently undergoing sample testing and qualification, with mass production scheduled to begin early next year. The plant is expected to create 50 local job opportunities and strengthen E&R's supply capabilities for semiconductor and OSAT customers in Southeast Asia.
Deepening Roots in Southeast Asia's Packaging Hub: Localized Mass Production of Advanced Carrier Tapes
Accounting for approximately 13% of the world's backend packaging and testing capacity, Malaysia's semiconductor market is projected to reach $16.51 billion by 2030, driven by robust policy support. Capitalizing on this momentum and increasing regional customer demand, E&R has established a footprint in Phase III of the Batu Berendam Free Trade Zone in Melaka. The facility brings its manufacturing expertise in high-end Embossed Carrier Tapes and Cover Tapes directly to local production.
Through "local manufacturing and fast response," the new plant directly addresses the needs of OSAT and semiconductor customers—shortening lead times while providing high precision, excellent electrostatic discharge (ESD) protection, and robust packaging interfaces to support advanced packaging trends such as chip miniaturization and Chiplet integration.
Opening a New Chapter with "Innovation, Collaboration, and Growth"
E&R President KS Chen stated: "To address growing customer demand in Southeast Asia, we have shifted part of our production focus for packaging materials to Malaysia while expanding capacity. Furthermore, this facility serves as a local hub for E&R's semiconductor equipment Field Service Engineers. We will focus on hiring local talent and building our specialized equipment engineering team, enabling us to provide immediate, localized technical support and after-sales services."
AK Ong, General Manager of the Malaysia plant, added: "The completion of our new facility allows us to stay closer to our customers, offering real-time support. We remain committed to delivering top-quality products and strictly monitoring every quality checkpoint to create a win-win future for all."
