KUALA LUMPUR: Bosch Malaysia has plans to set up a manufacturing facility in Batu kawan Industrial Park in Penang for the testing of semiconductor components and sensors. In a statement issued today, the technology provider said it has signed a sales and purchase agreement with Penang Development Corporation for land on which to build the facility. The building will sit on an about 100,000 sqm of land and will primarily focus on the final testing of components manufactured at Bosch Automotive Electronics’ fab in Dresden, Germany. The components comprise semiconductors used in airbag systems or engine control units, among other things. The plant will also house R&D and training facilities. Construction of the plant is scheduled to begin in 2021 and completion of the production area and first series production will commence in 2023. “With the long-term forecasts for growth of semiconductor component quantities, coupled with the front-end production in Bosch’s Dresden facility in Germany, capacity expansion is required for the back-end production, which is the final testing phase of semiconductors and sensors. "This new site is also intended to strengthen the matured eco- system for the semiconductor industry here in Penang,” said Bosch managing director Simon Song. According to the statement, Penang was chosen as the location of the first final testing facility in Southeast Asia due to the high level of semiconductor knowledge in the region, its proximity to business partners and the ability to manufacture economically under cost pressure. Bosch added that Malaysia contributes 10% of back-end semiconductor output globally, out of which 8% is contributed by Penang. “The State government is pleased to further strengthen our relationship with Bosch, one of the eight pioneers that charted Penang’s industrialisation five decades ago. “Bosch's new investment ventures implies the company’s confidence in its technology for the future and Penang’s ecosystem is capable and sustainable in fulfilling the stringent requirements of the automotive industry," said Penang Chief Minister Chow Kon Yew.