Ferrotec Expects Over 1,000 New Jobs From Its Second Semiconductor Plant in Kulim

Ferrotec has opened a second factory in Kulim, Kedah, in a RM1 billion expansion that the Malaysian Investment Development Authority expects to create more than 1,000 jobs. The Padang Meha plant is due to start increasing production in the first quarter of 2027, with full production targeted for the second quarter.

The plant was formally opened on Oct. 28, according to a Nov. 5 statement from MIDA. The opening marked the completion of the facility. MIDA's production timetable puts the increase in output several months later, and the jobs figure describes expected hiring from the expansion. The authority separately reported that the company's Kulim operations already employ more than 2,200 people.

MIDA identified engineers, technicians and production specialists among the intended hires. It did not provide a breakdown of those jobs by occupation or publish a hiring timetable or pay ranges. The projection is therefore an indication of the scale of the expansion, rather than a count of vacancies already advertised. The authority did not specify how many jobs would be in place by the time the new plant reaches full production.

What the second factory adds

The factory adds nearly one million square feet of manufacturing space, according to MIDA. It is equipped to accommodate more than 700 precision computer-controlled machines, which are used to shape parts to specified dimensions. The facility also has connected sensors and guided vehicles for moving materials. The machine figure describes what the facility can accommodate; it does not establish how many machines are already producing parts.

Ferrotec supplies manufacturers of semiconductor equipment. Its existing Kulim operation works with materials such as quartz and advanced ceramics, fabricates precision metal parts and assembles systems that combine electrical and mechanical components. The expansion adds capacity at a stage of the supply chain that comes before the manufacture of chips. It is separate from an investment in a factory that makes or packages the chips themselves.

The company's announcement on the first Kulim plant gives some context for the expansion. That site began operating in January 2024. MIDA put its initial investment at more than RM900 million and said spending committed to both sites totals about RM1.9 billion. The RM1 billion for the second plant is part of that combined figure.

In an earlier briefing for investors, Ferrotec described Malaysia as a future mass production base for customers in Europe and the United States. It said utilization at the first site had improved and that it intended to advance customer certification as capacity expanded. The briefing identified quartz, ceramics and metal processing at both Kulim sites. That puts the second plant in the same broad product lines as the first while increasing the amount the company can manufacture in Malaysia.

What to watch after the opening

MIDA said the expansion presents opportunities for Malaysian suppliers as well as workers. Its announcement did not identify any new local suppliers or give a figure for the share of purchases that the company intends to source domestically. Representatives of US equipment makers Lam Research and Applied Materials attended the opening, according to MIDA. The authority did not announce a new order or contract with either company at the ceremony.

The two milestones to watch are the start of the planned production increase in the first quarter of 2027 and whether the factory reaches full production in the following quarter. Job postings and supplier agreements, if disclosed, would show how the capacity is translating into work in Kedah. For now, the building has opened; the hiring estimate and production dates remain projections.