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

Malaysia's E&E supply chain draws ATX Group to launch US$55mil plant in Melaka, its first outside China
  • Distributors of silicon assembly and testing worldwide
  • strengthening the supply network for Malaysia and its clients in terms of technology

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

Following , the official beginning of the service follows. Life Energy Motion ( LEM)  a European company with a leading position in electronic measurements inaugurated its  US$ 16. 5 million ( RM79 million ) production plant in Penang, on Fri.   Although the investments, which are relatively small in comparison to the billion dinars opportunities that make Malaysia famous, reflect the strong attraction of Malaysia’s world-class silicon capabilities, which have resulted in an increase in small but significant E& investments. E supply chain people relocate to Malaysia to get closer to consumers and profit from the skilled workforce.    

The first ATX Semiconductor ( Melaka ) Sdn Bhd plant is the first one outside of China, not only is it the first one in Malaysia. With over 2,000 jobs being created in Melaka, ATX Group can capitalize on its strong foothold in China, along with its container and test options, to facilitate technology transfer and skill development between China and Malaysia.
The new facility has begun carrying out manufacturing operations and will continue to grow its production capacity to better serve customers in Malaysia and the surrounding areas. From the beginning of 2026, ATX anticipates expanding its operations.
Melaka state officials, members of the Malaysian Investment Development Authority ( MIDA ), ATX customers and business partners, as well as employees of ATX Group, were present at the event.
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. For Malaysia and its customers around the world, ATX is strengthening its electronics supply chain. ”

Malaysia's E&E supply chain draws ATX Group to launch US$55mil plant in Melaka, its first outside ChinaThe launch of ATX Semiconductor’s facility here, according to Sikh Shamsul Ibrahim ( pic ), CEO of MIDA. It is a result of our strong economic position and the numerous attractions that make Malaysia an ideal investment hub in the area. 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 lead to the creation of over 2,000 jobs and strengthen our supply chains in order to meet the changing demands of the E&& E industry. ”
With more than three decades of collaboration and innovation, ATX Melaka has established partnerships with global brands 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. From Small Outline Transistor ( SOT )/ Quad Flat No Lead ( QFN) / Transistor Outline ( TO ) to Sensors, the ATX Semiconductor ( Melaka ) factory will be producing a wide range of semiconductor products.

A view of the ATX Melaka plant from Google Earth.