The new facility, located in Phase III of the Batu Berendam Free Trade Zone, represents a pivot in the company's global strategy. While existing operations in China maintain steady output, E&R is shifting a portion of its production focus to Malaysia to better serve regional semiconductor and OSAT customers. The plant is currently undergoing qualification processes, with full-scale manufacturing of high-end Embossed Carrier Tapes and Cover Tapes slated for early next year.

Beyond production, the site will function as a hub for Field Service Engineers to provide immediate technical assistance. E&R President KS Chen noted that the investment is designed to cut lead times and support the industry’s shift toward chip miniaturization and Chiplet integration. The company expects the expansion to generate 50 local jobs while strengthening its supply chain presence in a market projected to reach $16.51 billion by 2030.