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Aixtron to build new plant in Malaysia

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New location will include assembly & test, engineering support and local purchasing for South East Asian customers

Aixtron, a supplier of deposition equipment for compound semiconductors, has decided to build a new manufacturing facility in Malaysia in order to tap into the fast growing semiconductor equipment ecosystem in South East Asia.

The company aims to manufacture some of its 100/150/200 mm products in the new plant in the Penang region, mostly to address customers in Asia. The new location will include assembly & test, engineering support and local purchasing capabilities. This will allow local assembly of some of Aixtron’s products, and sourcing of many parts from the local supply chain of module and component makers.

Aixtron says the modular factory design allows for future expansion with little additional investment.

Dato’ Loo Lee Lian, CEO of InvestPenang said: “Aixtron’s decision to build a new facility in Penang underscores our region’s growing reputation as a premier destination for advanced technology investments. This new facility highlights Penang's attractiveness as a strategic hub for innovation and manufacturing, reflecting the company's confidence in our highly skilled workforce and favorable business environment.”

Felix Grawert (pictured above), CEO of Aixtron said: “Overall, this represents a clear growth step for us, strengthens our position in the Asian market. We remain dedicated to our European locations in Herzogenrath, Germany, and Cambridge, UK. Both locations are central pillars for research, development, and also production, especially due to many strong and specialised suppliers. The plant in Malaysia complements the strengths of the existing locations and allows to leverage “the best of both worlds” by adding access to the South East Asia supply chain. No personnel reduction is planned in Europe as a result of this”.

The capex for the new site is estimated at around €40 million, to be spent in H2/2026 and H1/2027. The plant is expected to start operation in the spring of 2027 with first shipments expected in the second half of 2027. The start-up costs expected in 2026 in connection with preparing for production will not affect the forecast for fiscal year 2026.

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