# Malaysia semiconductor and E&E sector development

> Live situation record from CLSTR: https://clstr.news/situations/malaysia-semiconductor-and-ee-sector-development
> Updated: 2026-10-12T03:04:11.000Z. Sources: 7. Developments: 2.

E&R Engineering Corp. announced the opening of a new semiconductor packaging facility in Malaysia’s Melaka Free Trade Zone, scheduled for October 13, 2026. The expansion aims to meet Southeast Asian demand and shift some production focus from China to Malaysia to increase capacity for high-end embossed carrier and cover tape technologies.

In tandem with private sector expansion, the Malaysian government has outlined strategies to strengthen the electrical and electronics (E&E) sector. Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani stated the nation seeks to reduce reliance on imported components and raw materials by integrating more local small and medium enterprises into the supply chain. These efforts aim to mitigate risks from global semiconductor cycles, supply chain disruptions, and geopolitical tensions while increasing the domestic production of semi-finished products.

## Timeline

### 2026-10-12: Malaysia seeks to reduce import reliance and diversify E&E sector

Malaysia aims to boost trade surpluses and mitigate semiconductor cycle risks by increasing local SME involvement in the E&E supply chain and diversifying export sectors.

3 sources. https://clstr.news/cluster/malaysia-seeks-to-reduce-import-reliance-and-diversify-ee-sector

### 2026-10-04: E&R Engineering to open new semiconductor plant in Malaysia

E&R Engineering Corp. will open a new semiconductor packaging materials plant in Malaysia's Melaka Free Trade Zone on October 13, 2026, to serve growing Southeast Asian demand.

4 sources. https://clstr.news/cluster/er-engineering-to-open-new-semiconductor-plant-in-malaysia

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Cite as: Malaysia semiconductor and E&E sector development. CLSTR, https://clstr.news/situations/malaysia-semiconductor-and-ee-sector-development