Malaysia's E&E supply chain draws ATX Group to launch US$55mil plant in Melaka, its first outside China

• Global provider of semiconductor assembly and test services
• Strengthening the electronics supply chain for Malaysia and their customers

ATX Semiconductor Group, a China based global provider of semiconductor assembly and test services, offering a full range of turnkey services that include package design, front-end engineering test, wafer test, package assembly and final test celebrated its new US$55 million (RM258 million) manufacturing plant in Free Trade Zone III, Batu Berendam, Melaka today.

The official opening of the facility follows on the heels of Life Energy Motion (LEM) a Swiss company that is a leading player in electrical measurements which inaugurated its US$16.5 million (RM79 million) production plant in Penang, on Fri. Both investments, relatively small when compared to the billion ringgit investments that get the headlines in Malaysia, nonetheless reflect the strong lure of Malaysia's world-class semiconductor capabilities that has seen an increasing number of small but important E&E supply chain players expand to Malaysia to be closer to customers and take advantage of the deep talent pool.  

ATX Semiconductor (Melaka) Sdn Bhd is not only the first ATX Semiconductor plant in Malaysia but is also the first plant outside China. ATX Group's robust footprint in China, coupled with its packaging and test solutions, positions it to capitalise on its capabilities as it expands in Melaka with over 2,000 jobs to be created while facilitating technology transfer and talent development between China and Malaysia.

The new facility has begun manufacturing activities and will continue to expand its production capacity to better serve customers in Malaysia and the surrounding regions. ATX also expects operations to expand from the first half of 2026.

The event was attended by Melaka state officials, executives from the Malaysian Investment Development Authority (MIDA), ATX customers and business partners along with ATX Group employees.

Chris Hsu, CEO of ATX Group, said, “ATX investment in Malaysia reinforces ATX’s commitment in expanding world-class semiconductor manufacturing capabilities. The products and services ATX provide encompass all industries including communication, automotive, consumer, industrial, high-performance computing and medical. ATX is strengthening the electronics supply chain for Malaysia and their customers worldwide.”

Sikh Shamsul Ibrahim (pic), CEO of MIDA, said, “The launch of ATX Semiconductor’s facility here reflects our strong economic position and the diverse attractions that make Malaysia an ideal investment hub in the region. With strategic proximity to key markets, a rich culture, and a robust semiconductor ecosystem, Malaysia is well-positioned to attract a broad spectrum of international investors, including major Chinese corporations. This project will create over 2,000 jobs and strengthen our supply chains to meet the evolving needs of the E&E industry.”

With a legacy of collaboration and innovation extending more than three decades, ATX Melaka has forged partnerships with multinational leaders like Panasonic and UTAC Group. Leveraging a blend of Eastern and Western manufacturing best practices, including 5S, Kaizen, Toyota Way, and change management, ATX Melaka is poised to establish a strong presence among semiconductor players on a global scale.
ATX now has six IATF16949 certified manufacturing facilities worldwide with more than 8,000 employees along its sales offices across US, Europe, Singapore, Japan, and China. ATX Semiconductor (Melaka) factory will be producing a wide range of semiconductor products from Small Outline Transistor (SOT) /Quad Flat No Lead (QFN) /Transistor Outline (TO) to Sensors.