Enovix, a next-generation 3D silicon-lithium battery design and manufacturing company founded in 2007, is a global leader in high-performance battery technology. On August 8, it announced the opening of its first high-volume manufacturing facility (hereinafter referred to as Fab2) in Malaysia.
In his speech, Enovix CEO Raj Talluri mentioned that the company's goal is to manufacture 100% active silicon batteries, a technology and manufacturing approach that significantly differs from other battery manufacturers. Enovix is now ready to commence large-scale mass production in Penang, Malaysia.
With the rise of AI and emerging applications, demand for energy density and quantity in device batteries continues to increase. Enovix believes that with its advanced technology, it will not only continue to satisfy the demands of smartphones and wearable devices but also be prepared to fulfill the needs of computers, electronic equipment, and electric vehicles (EVs).
Enovix plans to invest a total of US$1.2 billion in Malaysia over the next 15 years. Enovix, listed on NASDAQ, is headquartered in the US and has expanded its operations in India, South Korea, and Malaysia in recent years. It has also developed close ties with China's electronics industry.
Sources stated that Malaysia's semiconductor industry exports reached MYR575 billion (approx. US$125.27 billion) in 2023. While this marks a 3.36% year-on-year decrease compared to MYR595 billion (approx. US$134.6 billion) in 2022, this performance is still noteworthy given the 8.2% decline in global semiconductor sales in 2023.
This performance is attributed to the entry of globally renowned semiconductor companies into Malaysia. About 20% of Malaysia's export products are sold to the US, making Malaysia the largest supplier of US semiconductors.
Among the cities, Penang is especially important in the semiconductor and electronics industry, with major companies like AMD, ASE, Micron, Onsemi, BYD, and Infineon, which also chose to hold the opening ceremony of its new 8-inch SiC plant in Kulim on the same day (August 8), having established key operations sites there.
In an interview with DIGITIMES, Raj Talluri mentioned that since the 1970s, Malaysia has invested a lot of resources in supporting the semiconductor industry, especially in areas such as testing and packaging. Around 13% of the world's chips are completed in Malaysia, indicating the availability of many skilled talents and good infrastructure.
Moreover, the government provides substantial support, and Malaysia has a favorable geographic location for transportation. All of these factors make Malaysia an ideal location for the development of cutting-edge technology as well as the semiconductor and electronics industries.
Jagdeep Singh Deo, Deputy Chief Minister of Penang, also attended the Enovix Fab2 opening ceremony and mentioned that although Penang is only a small part of Malaysia, it plays a critical role in the global semiconductor industry.
Over 400 multinational companies have established operation sites in Penang, and US investors continue to enter the region. Additionally, Penang is home to over 6,000 small and medium-sized enterprises (SMEs).
Jagdeep Singh Deo believes that even SMEs have the chance to become multinational corporations one day. As companies like Enovix establish a strong presence in Penang, they can collaborate with local SMEs, creating more business opportunities and growth.
For instance, Enovix has already signed contracts with local electronics manufacturers to establish partnerships in the Penang Science Park.
