E R Engineering opens semiconductor packaging facility in Melaka
Semiconductor equipment provider E R Engineering opened a manufacturing subsidiary in the Melaka Free Trade Zone to increase global production of semiconductor packaging materials
KAOHSIUNG, Oct. 5, 2026 - Semiconductor packaging company E&R Engineering Corp., a global provider of equipment, announced plans to open a new facility in Malaysia. The company will officially launch its subsidiary, E&R SEMICONDUCTOR (MALAYSIA) SDN. BHD., in the Melaka Free Trade Zone on October 13.
E&R Engineering is expanding its global strategy to meet increasing demand in Southeast Asia. While its Chinese plant continues to grow steadily, the firm is focusing a portion of production in Malaysia to enhance capacity. The new facility is currently under sample testing and qualification, with mass production set to begin early next year.
Upon completion, the new plant is expected to generate 50 local job opportunities while improving E&R's supply capabilities for customers in the region. Malaysia's semiconductor market is projected to reach $16.51 billion by 2030, driven by supportive policies.
The facility will leverage E&R's expertise in Embossed Carrier Tapes and Cover Tapes, contributing to the region's 13% of global backend packaging and testing capacity. By establishing a local presence, E&R aims to address customer needs with faster lead times, high precision, and excellent electrostatic discharge (ESD) protection.
E&R's President, KS Chen, commented on the company's strategy: "To address growing customer demand in Southeast Asia, we have shifted part of our production focus for packaging materials to Malaysia while expanding capacity. This facility will also serve as a local hub for E&R's semiconductor equipment Field Service Engineers, offering immediate technical support and after-sales services."
AK Ong, General Manager of the Malaysia plant, emphasized: "The completion of our new facility allows us to stay closer to our customers, providing real-time support. We remain committed to delivering top-quality products and ensuring a win-win future for all."
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.