THE arrival of COVID-19 vaccines in Malaysia might have contributed to Japan’s DENSO Corporation subsidiary company expanding its production capacity in Selangor in a RM160 mil investment project.
Following the approval from the Malaysian Investment Development Authority (MIDA), the project with DENSO Malaysia Sdn Bhd is scheduled to commence in April 2021.
Since recent years have seen an increasing number of electronic controls being adopted in various vehicle systems, DENSO Malaysia’s product range will focus on air-conditioning systems, radiators, engine control units, airbag electronic control units, electric power steering and other products.
MIDA CEO Datuk Azman Mahmud said: “We are honoured to be selected as the country outside Japan to produce the advanced products as a result of continuous research and development (R&D).
“Moreover, we acknowledge the operational expenditure of over RM20 mil in the next five years would benefit the local business ecosystem, from insurance, legal, banking, information and communication technologies (ICT) as well as transportation industries.”
DENSO Malaysia will be venturing into the production of automotive semiconductors, ASIC named “Exposed Package (Ex-PKG)”, which is superior and competitive in terms of high functionality, efficient high heat dissipation, miniaturisation and cost reduction.
This project is also in line with the Government’s National Automotive Policy (NAP) 2020 to develop critical components within next-generation vehicles, mobility technology and autonomous driving.
The investment will also establish fully automated machine production lines with DENSO-designed manufacturing equipment and unique processing techniques that emphasise on high efficiency and high quality.
The transfer of the product knowledge will also develop the local engineering skills among its workforce. – Feb 24, 2021