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MKS Instruments Breaks Ground on Super Center Factory in Malaysia

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MKS Instruments (NASDAQ: MKSI) has broken ground on a new super center factory in Penang, Malaysia. The state-of-the-art facility will span 500,000 square feet on a 17-acre plot and is expected to employ approximately 1,000 people. The factory, aimed at supporting growing semiconductor equipment needs for wafer fabrication, will be built in multiple phases with the first phase scheduled for completion in the first half of 2026. The expansion aligns with Malaysia's New Industrial Master Plan 2030 and follows the country's M&E sector growth, which saw 64 projects valued at RM2.8 billion approved in 1H2024.

MKS Instruments (NASDAQ: MKSI) ha avviato la costruzione di un nuovo centro super moderno a Penang, Malesia. La struttura all'avanguardia coprirà 500.000 piedi quadrati su un terreno di 17 acri e si prevede che impiegherà circa 1.000 persone. La fabbrica, progettata per sostenere la crescente domanda di attrezzature per semiconduttori nella fabbricazione di wafer, sarà costruita in più fasi, con la prima fase prevista per essere completata nella prima metà del 2026. Questa espansione è in linea con il Nuovo Piano Industriale Master della Malesia 2030 e segue la crescita del settore M&E del paese, che ha visto approvato 64 progetti per un valore di RM2,8 miliardi nel primo semestre del 2024.

MKS Instruments (NASDAQ: MKSI) ha comenzado la construcción de una nueva fábrica supercentro en Penang, Malasia. La instalación de última generación abarcará 500,000 pies cuadrados en un terreno de 17 acres y se espera que emplee aproximadamente a 1,000 personas. La fábrica, destinada a apoyar las crecientes necesidades de equipos de semiconductores para la fabricación de obleas, se construirá en múltiples fases, con la primera fase programada para completarse en la primera mitad de 2026. La expansión está alineada con el Nuevo Plan Maestro Industrial de Malasia 2030 y sigue el crecimiento del sector M&E del país, que vio aprobados 64 proyectos valorados en RM2.8 mil millones en el primer semestre de 2024.

MKS Instruments (NASDAQ: MKSI)말레이시아 펜앙에 새로운 슈퍼 센터 공장의 착공을 시작했습니다. 이 최첨단 시설은 17 에이커의 부지에 50만 평방피트를 차지하며 약 1,000명의 고용을 예상하고 있습니다. 웨이퍼 제조를 위한 반도체 장비의 증가하는 수요를 지원하기 위해 설계된 이 공장은 여러 단계로 건설되며, 첫 번째 단계는 2026년 상반기 완료를 목표로 하고 있습니다. 이 확장은 말레이시아의 2030년 신산업 마스터 플랜과 일치하며, 2024년 상반기에 RM28억 링깃 상당의 64개 프로젝트가 승인된 M&E 부문의 성장에 따른 것입니다.

MKS Instruments (NASDAQ: MKSI) a lancé la construction d'une nouvelle usine super centre à Penang, Malaisie. Cette installation à la pointe de la technologie s'étendra sur 500 000 pieds carrés sur un terrain de 17 acres et devrait employer environ 1 000 personnes. L'usine, destinée à répondre à la demande croissante d'équipements semiconducteurs pour la fabrication de wafers, sera construite par étapes, la première étape étant prévue pour être achevée dans la première moitié de 2026. Cette expansion s'aligne avec le Nouveau Plan Directeur Industriel de la Malaisie 2030 et suit la croissance du secteur M&E du pays, qui a approuvé 64 projets d'une valeur de 2,8 milliards de RM au premier semestre 2024.

MKS Instruments (NASDAQ: MKSI) hat mit dem Bau einer neuen Supercenter-Fabrik in Penang, Malaysia begonnen. Die hochmoderne Anlage wird sich über 500.000 Quadratfuß auf einem 17 Hektar großen Grundstück erstrecken und voraussichtlich rund 1.000 Menschen beschäftigen. Die Fabrik, die darauf abzielt, den wachsenden Bedarf an Halbleitergeräten für die Waferherstellung zu unterstützen, wird in mehreren Phasen gebaut, wobei die erste Phase für die erste Hälfte des Jahres 2026 geplant ist. Die Erweiterung steht im Einklang mit dem neuen industriellen Masterplan Malaysias 2030 und folgt dem Wachstum des M&E-Sektors des Landes, in dem im ersten Halbjahr 2024 64 Projekte im Wert von 2,8 Milliarden RM genehmigt wurden.

Positive
  • New 500,000 square feet manufacturing facility expansion
  • Creation of 1,000 new jobs
  • Strategic location closer to customers and suppliers
  • Enhanced operational capabilities in growing semiconductor market
Negative
  • Significant capital investment required
  • Extended timeline for full operational capability (first phase in 2026)
  • Multiple phase construction indicates delayed full capacity utilization

Insights

This factory expansion represents a significant strategic investment in MKS Instruments' global manufacturing capabilities. The 500,000 square foot facility in Penang's established semiconductor ecosystem positions the company to better serve the Asia-Pacific market while potentially reducing operational costs. The phased construction approach, with initial completion in 2026, allows for controlled scaling and risk management.

The investment demonstrates strong confidence in Malaysia's semiconductor manufacturing capabilities and aligns with industry trends of diversifying supply chains beyond traditional hubs. The creation of 1,000 new jobs will significantly boost local technical expertise while providing MKS with access to a skilled workforce at competitive costs. The location in Penang's "Silicon Valley of the East" offers strategic advantages through proximity to customers, suppliers and established infrastructure.

This expansion is strategically timed with the semiconductor industry's growing focus on Southeast Asia as a key manufacturing hub. The investment strengthens MKS's position in the semiconductor equipment supply chain by establishing a major presence in a region known for its robust electronics manufacturing ecosystem. The facility's scale suggests MKS is preparing for anticipated growth in wafer fabrication equipment demand.

The location choice is particularly noteworthy given Penang's established semiconductor ecosystem and proximity to major chip manufacturers. This move will likely enhance MKS's competitive position by reducing lead times and improving supply chain resilience. The investment also demonstrates confidence in the long-term growth prospects of the semiconductor industry in the region.

New Factory in Penang to Create 1,000 Jobs and Boost Malaysia's Manufacturing Sector

ANDOVER, Mass., United States and KUALA LUMPUR, Malaysia, Oct. 24, 2024 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of technologies that transform the world, the Malaysian Investment Development Authority (MIDA) and InvestPenang today announced that MKS celebrated the groundbreaking ceremony of its super center factory in Penang, Malaysia to support the growing needs of semiconductor equipment for wafer fabrication in the region and globally. The state-of-the-art facility will be located on a 17-acre plot, spanning approximately 500,000 square feet. and will employ approximately 1,000 people. The new factory will be built in multiple phases, with the first phase scheduled for completion in the first half of 2026.

ADUN Bukit Tambun and Director of InvestPenang, YB Goh Choon Aik stated, “Penang, renowned as the Silicon Valley of the East, has cemented its position as a preferred global destination for electronics and electrical investments in Southeast Asia. With a legacy of five decades of industrialisation and a reputation for innovation and technological excellence, the state offers a thriving industrial ecosystem that naturally attracts investors. MKS Instruments' expansion into Penang is a testament to the state's appeal as a preferred investment destination, supported by its robust ecosystem.”

YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), welcomed MKS Instruments to Malaysia, stating, “This groundbreaking super center factory is a resounding affirmation of our government's commitment to expediting investors' projects with the able assistance of agencies like MIDA. More importantly, this aligns with our New Industrial Master Plan 2030, which aims to enhance our economic complexity, fostering symbiotic relationships between global companies and local SMEs, and creating high-skilled, high-paying jobs in cutting-edge sectors like engineering and technical fields, for the benefit of Malaysians. I'm confident that these initiatives will catapult our semiconductor sector to the pinnacle of the global value chain, a true 'tour de force' in the world of industry.”

Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid stated “This momentous occasion presents a golden opportunity for our machinery and equipment (M&E) companies to showcase their prowess in producing high-value products and integrated services that meet the exacting standards of multinational corporations (MNCs). MIDA remains steadfast in its commitment to supporting and facilitating investments that enhance operational capabilities, ultimately catalysing the meteoric rise of Malaysia's manufacturing sector, a true 'industrial powerhouse' in the making.”

“Penang offers an attractive and rapidly growing semiconductor ecosystem, and building a significant presence here is part of our strategic and long-term capital planning,” said Dr. John T.C. Lee, President and Chief Executive Officer of MKS. “Adding Penang to our global footprint puts us closer to our customers, suppliers and a robust technology infrastructure, including a deep and talented labor pool, as we continue to spur innovation and enhance our capabilities as a leader across a broad array of semiconductor manufacturing applications.”

MIDA reports that for the first half of 2024 (1H2024), the Machinery and Equipment (M&E) sector saw promising growth, with a total of 64 projects approved, amounting to investments valued at RM2.8 billion. These projects are anticipated to create significant opportunities, generating over 3,500 new jobs and contributing to the sector’s continued development and expansion in Malaysia.

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.

About InvestPenang

InvestPenang is the Penang State Government’s principal agency for the promotion of investments. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), and Global Business Services (GBS) Focus Group (promoting and developing digital economy). For more information, please visit https://investpenang.gov.my.

About MKS Instruments

MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

For more information, please contact:

MIDAInvestPenangMKS Instruments
Ms. Zakiah Sajidan
Director, Machinery and Metal
Technology Division
Email: zakiah@mida.gov.my
Tel.: +603 22676769

Ms. Elaine Cheah
Communications & Business
Intelligence
Email: elaine@investpenang.gov.my
Tel.: +604 6468833

Mr. Bill Casey
Senior Director, Marketing
Communications 
Email: press@mksinst.com
Tel.: +1 630 995 6384 

Ms. Kerry Kelly
Partner, Kekst CNC
Email: kerry.kelly@kekstcnc.com
   

Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, regarding MKS’ construction of a factory in Malaysia and the projected timeline. Any statements that are not statements of historical fact should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein, including as a result of the factors described in MKS’ Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent Quarterly Reports on Form 10-Q, as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.


FAQ

When will MKS Instruments (MKSI) complete the first phase of its new Malaysia factory?

The first phase of MKS Instruments' new Penang factory is scheduled for completion in the first half of 2026.

How many jobs will MKS Instruments (MKSI) create at its new Penang facility?

MKS Instruments' new super center factory in Penang, Malaysia will employ approximately 1,000 people.

What is the size of MKS Instruments' (MKSI) new Malaysia facility?

The new facility will be located on a 17-acre plot and will span approximately 500,000 square feet.

What is the purpose of MKS Instruments' (MKSI) new Malaysia factory?

The factory will support the growing needs of semiconductor equipment for wafer fabrication in the region and globally.

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