Lam Research strengthens global manufacturing network with largest manufacturing facility in Malaysia
By Digital News Asia September 15, 2021
- Company exceeds initial estimates on facility size and local hiring to meet rising demand
- Among the first of top global wafer fab equipment makers to set up facility in Penang
Lam Research Corporation (Nasdaq: LRCX) announced the expansion of its global manufacturing capacity with the opening of the company’s largest facility in Batu Kawan, Malaysia, early Aug. The new manufacturing site will allow Lam to work closely with key customers and supply chain partners in the region, while fortifying the resiliency of its manufacturing network and supporting growth amid rising demand for semiconductor technology.
“The opening of our new facility in Penang is a critical step we’re taking to meet growing demand for our cutting edge technology, expand our global footprint to better serve our customers and position our company for continued growth,” said Tim Archer (pic), president and CEO of Lam Research Corporation, who was onsite for the opening of the new facility. “I would like to acknowledge the tremendous efforts of Lam’s employees and partners to complete the project on time despite the challenges of the pandemic.”
Penang Chief Minister Chow Kon Yeow, who attended a virtual ceremony to mark the opening of the facility, stated, “I am encouraged that more global semiconductor companies are expanding their operations to Penang. It is evident that the state government’s efforts to create a sustainable environment, vigorous industrial ecosystem and supportive infrastructure appeals to major investors like Lam.”
Chow added that with the presence of Lam, among the first of the world’s top wafer fabrication equipment makers to establish a manufacturing facility in the country, Penang will be able to move up the global semiconductor value chain by unlocking new opportunities in front-end semiconductor manufacturing. This creates prospects for more high value job opportunities for the local workforce.
“We are proud that Malaysia continues to fit into reputable foreign companies’ growth and business strategy. Lam’s investment is a testament to the competitiveness of our broader manufacturing sector,” said CEO of Malaysian Investment Development Authority (MIDA), Arham Abdul Rahman. “Despite the Covid-19 pandemic, we remain steadfast in creating an environment that is safe and business friendly. The Government, through MIDA, has been hard at work to entice more higher quality investments globally, particularly in the areas of technology and innovation, like Lam, to propel Malaysia to greater heights along the framework of the National Investment Aspirations.”
Lam’s facility at Batu Kawan, also known as Lam Research International Sdn Bhd (LRI), was initially planned for a built-up area of 700,000 sq ft however has now expanded to more than 800,000 sq ft to meet rising demand. In addition, the company has expanded initial hiring projections from 350 to over 600 employees by year end to support its growth.
LRI adds to Lam’s existing manufacturing sites across the world, in Austria, Korea and Taiwan, and the United States. Lam has already shipped its first modules out of the facility and expects to ramp up production across Lam’s entire portfolio of leading-edge products.