[News] AIXTRON to Build New Manufacturing Facility in Malaysia

On March 25, compound semiconductor deposition equipment supplier AIXTRON announced plans to establish a new manufacturing facility in Malaysia, aiming to strengthen its global competitiveness and capture opportunities arising from the rapidly growing semiconductor equipment ecosystem in Southeast Asia.

The new plant, to be located in Penang, Malaysia, will produce selected 100 mm, 150 mm, and 200 mm products, primarily serving customers across Asia.

The facility will integrate assembly and testing, engineering support, and localized procurement. This setup will enable partial local assembly of AIXTRON’s products, while sourcing a significant share of components from regional module and parts suppliers. The plant will adopt a modular design, allowing for future expansion with relatively limited additional investment.

Dr. Felix Grawert, CEO of AIXTRON, stated that the move reflects the company’s commitment to best practices in the global semiconductor supply chain, while leveraging Malaysia’s well-established industrial ecosystem to further strengthen its presence in the Asian market.

Meanwhile, AIXTRON will continue to develop its European bases in Herzogenrath, Germany, and Cambridge, UK, which remain core pillars for R&D and production. The Malaysia facility will complement these existing operations.

The company disclosed that capital expenditure for the new plant is expected to total approximately Euro 40 million, which is estimated to be spent in H2/2026 and H1/2027, with operations expected to commence in spring 2027 and initial product shipments targeted for the second half of the same year.

With the construction of the Malaysia facility, AIXTRON is expected to further increase its exposure to the Asian market. According to its latest financial results, the company reported total revenue of Euro 556.6 million in FY2025, with Asia accounting for 60% of revenue, compared to 40% from Europe and the Americas.

(Photo credit: AIXTRON)