Enovix, a company founded in 2007 that designs and manufactures next-generation 3D silicon-lithium batteries, is a global leader in high-performance battery technology. On August 8, the company announced the opening of its first high-volume manufacturing facility (hereinafter referred to as Fab2) in Malaysia.
In his speech, Raj Talluri, CEO of Enovix, mentioned that the company’s goal is to produce 100% active silicon batteries, a technology and manufacturing approach that is quite different from other battery manufacturers. Enovix is now ready to start large-scale mass production in Penang, Malaysia.
With the advent of AI and new applications, the requirements for energy density and quantity in device batteries continue to increase. Enovix believes that with its advanced technology, it will not only continue to meet the needs of smartphones and wearable devices, but will also be prepared to meet the needs of computers, electronic devices and electric vehicles.
Enovix plans to invest a total of US$1.2 billion in Malaysia over the next 15 years. Enovix is listed on NASDAQ, headquartered in the US, and has expanded its operations in India, South Korea and Malaysia in recent years. The company has also built close ties with the Chinese electronics industry.
According to sources, Malaysia’s semiconductor industry exports reached MYR 575 billion (approximately US$125.27 billion) in 2023. While this represents a year-on-year decline of 3.36%, compared to MYR 595 billion (approximately US$134.6 billion) in 2022, this performance is still notable considering the 8.2% decline in global semiconductor sales in 2023.
This development is due to the entry of world-renowned semiconductor companies into Malaysia. About 20% of Malaysia’s export products are sold to the US, making Malaysia the largest supplier of American semiconductors.
Penang is particularly important among the cities for the semiconductor and electronics industry, with major companies such as AMD, ASE, Micron, Onsemi, BYD and Infineon, which also held the opening ceremony of their new 8-inch SiC plant in Kulim on the same day (8 August) after setting up major operations there.
In an interview with DIGITALRaj Talluri mentioned that Malaysia has invested a lot of resources in supporting the semiconductor industry since the 1970s, especially in areas such as testing and packaging. Around 13% of the world’s chips are completed in Malaysia, indicating the availability of plenty of skilled talent and good infrastructure.
In addition, the government provides significant support and Malaysia has a convenient geographical location. All these factors make Malaysia an ideal location for the development of high-tech, semiconductor and electronics industries.
Jagdeep Singh Deo, Deputy Chief Minister of Penang, also attended the opening ceremony of Enovix Fab2 and mentioned that although Penang is only a small part of Malaysia, it plays a crucial role in the global semiconductor industry.
Over 400 multinational companies have set up operations in Penang and US investors continue to flock to the region. In addition, Penang is home to over 6,000 small and medium-sized enterprises (SMEs).
Jagdeep Singh Deo believes that even SMEs have a chance to become multinationals one day. If companies like Enovix establish a strong presence in Penang, they can collaborate with local SMEs, creating more business opportunities and growth.
For example, Enovix has already signed contracts with local electronics manufacturers to establish partnerships in the Penang Science Park.