Royal Philips Electronics of the Netherlands is one of the world’s biggest electronics companies, as well as the largest in Europe, with 159,709 employees in over 60 countries and sales amounting to Euro 30.4 billion in 2005.

Philips has had a presence in Malaysia since the late 1930’s. The business activities of the Philips Group of Companies in Malaysia at that time included manufacturing, exports, local sales and marketing. In 1960, Philips Malaysia Sdn Bhd, which was incorporated initially, sold light bulbs through appointed agents. By the 1970s, Philips had taken over marketing operations and expanded its range of products. Today, having established a credible and reputable name in various industries which include lighting, semiconductor, medical systems, digital networks, domestic appliances and personal care and consumer electronics, the business activities of the company consist of manufacturing, sales, marketing, technical and application support.

In July 1992, Philips and Motorola established a joint venture company called Semiconductor Miniature Products (Malaysia) Sdn Bhd. Situated at Tuanku Jaafar Industrial Park in Seremban, this plant produces surface mount discrete semiconductors for global consumption and incorporates high tech assembly and testing. Today, the company is a fully owned by Royal Philips Electronics of Netherlands and employs a workforce of over 900 employees at its plant.

In August 2005, Royal Philips Electronics of Netherlands acquired Agilent Technology’s 47% shares in Lumileds Lighting Int B.V. This resulted in Philips having earned the controlling ownership in Lumileds, which produces solid-state lighting. Through this Philips will expand its leadership
profile in lighting by further expansion of the solid-state lighting business. Located in Penang, Lumileds has an annual production value of RM700million. Over the next few years, the world market for high brightness LEDs is forecasted to grow by approximately 25% per year and Philips is in the best position to reap the benefits from here, Malaysia is the only manufacturing facility for Lumileds and employs 1200 people out of the total 1760 it employs in US, Netherlands and Asia.

“The Malaysian government policies are pro-business and I strongly believe this will ensure the continued resilience of the economy and attract foreign investors. The education system continues to produce talented and skilled resources. The government is already making headways by making Malaysia a regional education hub and providing incentives for the development of knowledge workers, says Mr. Rajah Kumar, Chairman and Chief Executive Officer (CEO), Philips Group of Companies, Malaysia. “Upgrading the infrastructure environment to ensure everyone is connected both online, offline, and the further development of the ICT landscape is important. This will enable big firms to outsource transactional activities to local based companies as well as support the business of smaller companies that cannot afford leased lines, with the availability of advanced broadband capabilities,” added Mr. Kumar.

Determined to maintain its profitable growth, Philips contributes significantly to the Malaysian economy with a turnover of around RM3 billion annually. Philips’ goal is to enhance its position in the Asia Pacific region and to ensure that the region contributes about one third of Philips’ global revenue. Key to Philips’ success is the need to grow in China, India and the ASEAN countries. Philips views ASEAN as a single integrated market of which Malaysia plays an important role. Philips Malaysia ranks second in contributing to the overall sales of Philips’ ASEAN group of companies.

“We are very pleased with our investments in Malaysia. The measure of success is in the return we get as tangible and intangible benefits. Intangible benefits are fundamentally important for the long-term sustainable growth of the firm. While the tangible benefits can be directly measured in terms of sales growth, profits and ROI, the intangible ones are deeper and are perceived, creating an emotional attachment to the firm, its people, and businesses”, observes the Chairman and CEO of the Philips Group of Companies in Malaysia.

Samsung has invested close to US$1.2 billion in Malaysia, making this the largest offshore investment for us and a true testimony of this country’s supportive environment for our business.

As an investor, we have enjoyed tax incentives, an efficient and developed infrastructure, and a quality labour force – factors which have contributed to the viability of our business in Malaysia. Samsung is encouraged by Malaysia’s strong support of industries such as ours and we remain fully committed to expanding our investments in the country.

The high standard of supporting industries here have also helped us to obtain quality local components, making Samsung products more competitive in the global market place.

Panasonic Industrial Company (M) Sdn Bhd started its operations in Malaysia in 1996 providing marketing, sales and services of electronic components and factory automation services to Malaysian electronic manufacturers.

Our products are for the export and domestic markets. As a company representing the Panasonic Group, all our products are obtained from other Panasonic subsidiaries and factories in Malaysia as well as worldwide.

Our company, which adheres to Panasonic’s corporate philosophy of “Ideas For Life”, is a one stop sales centre supporting the ever growing export and domestic markets. The company’s sales is derived from other consumer companies who use our electronic components in their products such as vacuum cleaners, mobile phones, televisions and computers.

Malaysia’s multiracial and multilingual workforce that is fluent in English was a pull factor for us in setting up operations in the country. In addition, the developed infrastructure and a vibrant business environment also makes it an ideal location for us to do business.

The Malaysian government’s pro-business policies and attractive incentives have enabled us to provide high quality products at competitive prices.

Ismeca Malaysia Sdn. Bhd. is a wholly owned subsidiary of Cohu Semiconductor Equipment Group, United States of America. Cohu is a leading supplier of IC and LED test handlers, micro-electro mechanical system (MEMS) test modules, back-end finishing equipment and thermal sub-systems used in final test, burn-in and system level test by semiconductor manufacturers and test subcontractors.

The company’s International Procurement Centre will create 63 jobs with income more than RM3,000 for Malaysians to support its operations to procure raw materials, and components for its manufacturing operations and to distribute its finished products to the global market.

INTEL Microelectronics (M) Sdn. Bhd.-Intel Corporation was incorporated in California in 1968, it is the world leader in silicon innovation and the world’s largest semiconductor chip maker. Intel Malaysia was established in 1972 in Penang. From an initial workforce of only 100 employees, it has evolved to become Intel Corporation’s largest and most diverse site outside of the United States. Today, Intel Malaysia proudly supports a broad product range including microprocessors, chipsets, network processors, and microcontrollers; with over 4 billion microchips produced to date.

Intel Malaysia has contributed to the country’s social and economic development through its activities in high tech manufacturing, design and development of the latest Intel products, global shared services and corporate social responsibility. It has invested more than RM14 billion over the past 42 years and employing 9,000 highly-skilled Malaysians.

Intel Malaysia’s Global Service Center (GSC) in Malaysia will undertake research, design & development and related ancillary activities for semiconductors & other computing devices; and services activities relating to finance, human resources, information technology, procurement, manufacturing, logistics, warehousing and sales marketing services.

Infineon started operating in Malaysia since 1973, through its Melaka plant, which used to be part of the semiconductor group of Siemens. Infineon was then spun off from Siemens AG. Malaysia is the only location outside of the USA and Europe where Infineon undertakes fully integrated manufacturing, both front end and back end operations, covering wafer fabrication, semiconductor chips assembly and testing.

Infineon operation in Malaysia is separated into 3 main
operations:-

• Infineon Technologies (Kulim) Sdn Bhd : Front end operation (wafer fabrication) in Kulim, Kedah
• Infineon Technologies (M) Sdn. Bhd.: Back end operations of advanced logic microelectronics products in Batu Berendam Free Trade Zone, Melaka
• Infineon Technologies (Advanced Logic) Sdn. Bhd.: Back end operations of power, discrete & sensors microelectronics products in Batu Berendam Free Trade Zone, Melaka

In addition to manufacturing operations, all Infineon sites in Malaysia
also conduct R&D on process development for next generation semiconductor chips and devices, especially in automotive and power semiconductor.

Since its establishment in Malaysia, Infineon has continued to expand and transform its operations through technology and innovation, becoming a significant contributor to the industrial transformation in the country. Both its Melaka and Kulim plants represent Infineon’s largest operation globally with more than 8,800 Malaysians employed as of 2015, about one-third of Infineon’s global workforce.

The positive track record of growth and stability for Fab 1 in Kulim, and MIDA’s assistance were instrumental to Infineon Board Members’ decision to expand its wafer fab facility. The Fab 2 facility will be a manufacturing competence centre with a focus on megatrend technologies for energy efficiency and automotive industries. It will also be undertaking R&D activities and providing technical training for its Malaysian employees. Ultimately, this project will position Malaysia as a leading production hub of these revolutionary products.

During the opening ceremony of Fab 2 facility in Kulim, the group CEO, Dr Reinhard Ploss stressed that they continued to choose Malaysia for their expansion plans due to the country’s skilled workforce and good infrastructure. This attests to the conducive business environment in Malaysia.

Malaysian engineers working in Infineon will have the opportunities to enhance their skills as the company provides substantial in-house as well as overseas training by experts from all over the world. Infineon also works closely with local universities such as Universiti Malaysia Perlis (Unimap), University of Science Malaysia (USM), International Islamic University Malaysia (IIUM), Universiti Tunku Abdul Rahman (UTAR) and University of Malaya (UM), where Infineon organises seminars and provides development hardware as well as best student awards, in order to churn out Malaysian talents according to the industry needs.

IC Microsystems Sdn Bhd (ICmic) is a fabless IC [integrated circuit] design house headquartered in Cyberjaya, Malaysia. The group was founded in 2001 by Abdul Rashid Munir, an experienced semiconductor industry professional. The initial investor is Silvaco Data Systems, a subsidiary of Silvaco International – an Electronic Design Automation [EDA] company based in Santa Clara, California. ICmic is a MSC company which has been approved for MESDAQ listing.

Essentially, ICmic has crossed the ‘development’ stage and plans have been drawn up to accelerate “growth” potentials. The strong point of the company lies in the fact that ICmic owns the technology [and the IP]; they are not using third-party technologies and therefore are not subject to royalty payments.

The company’s core competency is in the field of IC design, device modelling, simulation, layout and testing. IC design is very much related to the knowledge-based activities promoted by the Malaysian government. These activities will undoubtedly elevate the country’s status in the global semiconductor industry. Other operations like masking, foundry and packaging are outsourced to a number of international vendors who specialise in such services. However, ICmic ensures that only the best vendors are qualified and selected for the outsourcing of such services.

The current product portfolios which comprise of 82 devices are as follows:

Mixed Signals ICs [in the form of Digital to Analog Converters IC (DAC)] Radio Frequency [RF] ICsFixed Line Phone ICs Serial EEPROM ICs

As a demonstration of the company’s capabilities, all the products are conceptualised, designed and developed by ICmic with the exception of Serial EEPROM. In order to reach this stage, ICmic has invested close to RM14.0 million in R&D.

Recently, ICmic achieved a significant milestone by securing a contract from Telekom Malaysia Berhad [TM] to supply Caller ID phones worth RM13.8 million over a two year-period. The phone is designed using ICmic Single Phone IC as the core component. This is indeed a recognition of ICmic’s capabilities as this will be the first phone that uses a home grown IC. This same IC is also being used in an alarm security system designed by a US company for the US market and which will pave the way for ICmic to venture into other telecommunications related products that can incorporate its ICs. This is the advantage of “owning” the technology.

“Being a Malaysian company, we are committed to becoming a catalyst to further promote and elevate knowledge-driven and high value-added activities in the country” says Abdul Rashid Munir, Chief Executive Officer of IC Microsystems Sdn Bhd. “The underlying strength and success of ICmic lies in its highly skilled personnel with vast experience and expertise. ICmic also employs fresh local graduates who are trained by the experienced personnel of the company in the area of IC design”.

IC Design is a very competitive global business. It relies heavily on knowledge-driven initiatives and requires extensive research and development [R&D]. The level of technology involved in an IC design is very high as this activity, within the semiconductor value chain, has the highest value added component. This will undoubtedly pave the way for Malaysia to become a high value-added semiconductor producing country by incorporating all the activities along the value chain, namely IC design, wafer fabrication, assembly & test and technical marketing.

In terms of linkages, ICmic has an ‘operating’ network with a majority of the leading wafer foundries and assembly & test contract manufacturers in the world. In addition, ICmic customers worldwide include Celestica, Rockwell Automation, Litton Elecronics [China], LG etc. The company is also represented by an extensive distributor set-up including AVNET Logistics [USA] and Retronic GmbH [Germany].

Honeywell is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Honeywell’s operations in Malaysia started in 1985 and today it employs over 1,450 employees in six cities across Malaysia including Kuala Lumpur, Petaling Jaya, Shah Alam, Penang, Kemaman and Johor Bahru. Honeywell’s technologies and solutions have been supporting Malaysia in its development of a safer, more secure and energy efficient society.

Today, three of Honeywell’s business groups are operating in Malaysia.

Honeywell Aerospace operates out of a 220,000-square-foot facility in Penang that officially opened in January 2009. The Penang facility produces integrated avionics systems for commercial, business and general aviation and military aircraft.

Honeywell Automation and Control Solutions offers a complete portfolio of innovative products, solutions and systems to create safer, more comfortable, more secure, more productive and more energy efficient environments at home and at work. In Selangor, Honeywell has a manufacturing facility for electrical devices and systems.

In terms of oil and gas, Honeywell provides engineering, design and fabrication of process plants and equipment for gas processing and hydrogen industries in Malaysia. Honeywell Performance Materials and Technologies (PMT) manufactures membranes, which remove impurities from natural gas, at our facility in Penang for distribution to customers worldwide. PMT also provides refrigerants for air conditioning and refrigeration applications, as well as caprolactam for textile yarn production.

“Malaysia has been identified as one of Honeywell’s high growth markets for its strategic position in the global and ASEAN trade system,” says Jim Bujold, president of Honeywell Southeast Asia (Malaysia, Singapore, Thailand, Philippines). “Since we started operating in this country, we have received strong assistance from its government for our growth.” There are two examples in particular:

MIDA has played a very instrumental role in the timely start-up and operations of Honeywell’s UOP Malaysia Sdn Bhd and Honeywell Aerospace Avionics Penang. MIDA has granted the Special Incentive Program to these entities of Honeywell since their establishment, which includes favorable tax policies, R&D fund and talent development grants. MIDA’s proactive approach to understand the needs of the business and offering assistance where required is commendable.

Today, Honeywell’s UOP Malaysia employs more than 120 people in two locations, Penang and Kuala Lumpur. It serves as a global centre of excellence providing engineering design services, engineered systems and equipment for export to customers worldwide. And our Aerospace Penang facility has 768 employees and more than 88 percent of our leadership team are local hires. The Malaysian government’s strong support and contributions from local skilled talents have been a key to our success.

Globetronics Technology Bhd. is an integrated contract manufacturer of semiconductor-based products and services. It commenced operations in 1990 in a rented factory in Penang under the name of Globetronics Sdn. Bhd. with the two Malaysian founders as the only employees to service the Penang-based manufacturing operations of multinational corporations from throughout the world. Since then, the company has grown by 30% each year and today, it is listed on the Main Board of the Kuala Lumpur Stock Exchange.

We are headquartered in Penang and have now expanded our operations beyond Malaysia to serve our customers. Our 10 subsidiary companies and one associate company in Malaysia, Philippines, Hong Kong and China, and a sales office in the United States, develop and provide higher value-added services, highly cost-competitive package/process platforms and e-Business solutions to our customers globally.

Our success can be attributed to the investment-friendly policies of our Government, the stable political climate, the outstanding infrastructure, and the dedicated and skilled workforce in Malaysia. The resounding success of the operations of multinational corporations in Malaysia in the last 30 years has produced a big population of highly trained and skilled technical workers. This will enable Malaysia to spin-off to higher value-added manufacturing and intellectual property-related developmental and business activities.

For existing investors looking for continuous expansions or first-time investors, Malaysia has become the centre of manufacturing excellence as well as a fertile ground for R&D activities.

Fuji Electric (Malaysia) Sdn. Bhd. (FEM), a wholly-owned overseas subsidiary of Fuji Electric Device Technology Co., Ltd. (FDT) commenced operations in 1998 at the Kulim Hi-Tech Park, Kedah, Malaysia. Being one of the pioneer investors in the Kulim Hi-Tech Park, FEM has foreseen the potential of the industry at this strategic location.

The company expanded its operations from about 400 employees in 1999 to more than 1000 employees in 2008 and increased its 10 media production lines to 18 in 2007. Currently, the company’s production capacity is between 3.5 million disks per month to 7 million disks per month.

In 2007, with the strong support of MIDA, Kedah State Government and Kulim Hi-Tech Park Corporation, FDT decided to expand its semiconductor operations and renamed the company Fuji Electric Semiconductor (Malaysia) Sdn. Bhd. (FSM). In April 2008, the production of Insulated Gate Bipolar Transistor (IGBT) officially commenced. The silicon wafer chip production is expected to begin its operations in 2009. FSM is the first fully integrated IGBT production plant from silicon wafer chip production to IGBT assembly and test, and this marks a historic milestone for both FDT and FSM.

Strategically located in Malaysia, both companies are near to their customer base and major suppliers, and therefore the customers demands can be effectively served.

Managing Director, Dato’ Kozo Katarao, is of the view that Malaysia’s strategic location, good infrastructure, a large pool of skilled workers, stable social and political environment and relatively low cost for operations will ensure that the country continues to remain a competitive investment location.

More than 10 years ago, the Elektrisola Group, the world’s largest producer of fine and ultrafine copper magnet wire, started looking for a site for its first manufacturing plant in Asia. After a detailed comparison of possible locations in South-East and East Asia, we identified Malaysia as the best geographic and strategic location, and in 1990, made our decision to set up an automated high-tech production plant near Kuala Lumpur.

With the benefit of hindsight, the main factors which tipped the scale in favour of Malaysia at that time have, since then, not only exceeded our expectations but have continued to improve until today. Good general infrastructure and an English-speaking workforce of productive and trainable people were most important to us. In addition, the Malaysian government, federal as well as state-level, has proven to be business-minded and serious about attracting foreign direct investments. The combination of these factors has strongly contributed to our company’s rapid growth in Asia.

Today, Elektrisola Malaysia supplies customers in the automotive and electronics industries in 25 countries. Our continuous investment in Malaysia and the fact that our Malaysian operation is among the most competitive companies within the Elektrisola Group, justify our confidence in Malaysia as an excellent location for direct investment in Asia.