Denso Corporation has confirmed plans to invest MYR160m (US$40m) to expand semiconductor production capacity in Malaysia, according to local reports.
Subsidiary, Denso Malaysia said the expansion had been approved by the Malaysian Investment Development Authority (Mida) and construction work at its site in Selangor was now scheduled to start in April.
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Denso, with Toyota Motor Corporation as its largest shareholder, already produces engine and airbag control units in Malaysia, along with air conditioning systems, radiators and electric power steering systems among other parts.
Denso Malaysia confirmed it would invest in production of ASIC named exposed package automotive semiconductors which are said to offer greater functionality, high heat dissipation, high miniaturisation potential and cost reduction.
The company also said it would invest in fully automated production lines with in-house designed manufacturing equipment including unique processing techniques with emphasis on efficiency and high quality. The semiconductors would be shipped to customers worldwide.
The investment comes as the global auto industry faces an unprecedented shortage of semiconductors after key global suppliers last year switched production to meet rising demand for consumer electronics during the global COVID-19 pandemic.
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