Here’s how Micron Technology is beefing up the semiconductor industry in Malaysia

• With 12 manufacturing sites across the globe, Micron sees Malaysia as a critical role in filling the assembly and testing needs of the company’s fabrication sites.
• Micron plans to generate another 3000 jobs over the next three to four years in its operation in Malaysia.

In 2021, one of the world’s largest semiconductor manufacturers and the only US-based hardware memory manufacturer, Micron Technology Inc announced its biggest-ever expansion plan that will run through 2030. The company’s manufacturing expansion plans are in fact crystallizing at a time when major economies are reviewing their semiconductor policies in order to be more self-sufficient.

The US$150 billion expansion plan covers not only leading-edge memory manufacturing, but also research and development (R&D), including potential fab expansions, the company statement reads. Above all, Micron’s investment will address increasing demand for memory that is essential to all computing.

Tech Wire Asia had the pleasure to speak with Micron Malaysia’s Vice President Amarjit Sandhu Singh on the company’s operations in Malaysia and the critical role it plays. Here’s the first part of the interview.

How has Malaysia’s semiconductor market been so far for Micron?  

In the last decade, Malaysia has become critical to our global manufacturing footprint. As such we are investing in technology, sustainable operations, our people, and our communities in Malaysia. Through the recent RM1 million funding we wish to contribute to Malaysia’s ambition in building a resilient manufacturing sector and to remain competitive. 

One of the core pillars for the project is to ensure that local universities keep up with developments and the evolving technology to achieve industry relevance. As a nation, this will help ensure that graduates have the right skill sets that meet the job market needs to be employable. The area of focus for the R&D funding includes, semiconductor materials and smart manufacturing/ artificial intelligence.  

Can you share with us a bit more about Micron’s memory solutions?  

Micron Technology Inc is the leader in innovative memory solutions, where we help the world make sense of data by delivering technology that is transforming how the world uses information.  Through our global brands — Micron and Crucial — we offer the industry’s broadest portfolio. 

We are the only company manufacturing today’s major memory and storage technologies. Our solutions are purpose built to leverage the value of data to unlock financial insights, accelerate scientific breakthroughs and enhance communication around the world. 

Backed by more than 40 years of technology leadership, our memory and storage solutions enable disruptive trends, including artificial intelligence, 5G, machine learning and autonomous vehicles, in key market segments like mobile, data center, client, consumer, industrial, graphics, automotive, and networking. 

With 12 manufacturing sites across the globe, our locations in Malaysia play a critical role filling the assembly and testing needs of Micron’s fabrication sites. Micron’s establishment in Malaysia supports Micron globally with its focus on backend, SSD and memory module manufacturing. Micron Malaysia established its presence in Muar in 2010 and now has close to 4,000 team members in Malaysia. 

Both sites in Muar and Penang have been created to run parallel in terms of operations and strengthen the local electrical and electronic (E&E) industry. In November 2018, Micron announced a US$1.5 billion ringgit investment, and expansion plans for the new Center of Excellence for SSD Assembly and Test in Batu Kawan Industrial Park, Penang. 

The Muar facility is an assembly, test and finishing site for Micron’s NAND/NOR/multichip packages for mobile and auto-markets. It strives to deliver cost effective and high-quality memory solutions, and partners with Micron Singapore sites as the NAND Center of Excellence. 

The newer facility in Batu Kawan is Micron’s SSD Assembly and Test Center of Excellence. It will enable Micron to strengthen and accelerate, establishing its world-class wafer-in SSD/module-out capabilities.  

How has the pandemic impacted Micron’s operations in Malaysia?

In the last decade, Malaysia has become critical to our global manufacturing footprint. We are investing in technology, sustainable operations, our people, and our communities in Malaysia. Since the pandemic, we have implemented additional preventative protocols in our facilities to reduce the risk of exposure. 

As a result of our stringent preventative measures, Micron’s manufacturing operations have continued to run seamlessly. Globally, Micron has achieved robust profitability and the second-highest quarterly revenue in Micron’s history, US$$8.3 billion, an 37% improvement YoY. Record quarterly revenue in NAND as well as in our embedded business. 

We also further strengthened our product leadership by becoming first to introduce LP5x DRAM and uMCP5 managed NAND in mobile and the industry’s first functional safety capable LP5 for automotive applications. Finally, we have initiated a quarterly dividend that we aim to grow over time.  

What are Micron’s future plans in Malaysia?  

In terms of talent growth, 99% of our workforce are recruited locally, and we will continue to generate employment with our growth and deeply engage in the communities where we operate. Since 2018’s greenfield investment of US$350 million in Penang, Micron has steadily grown its presence in Malaysia. 

With close to 4000 team members currently, we plan to generate another 3000 jobs over the next three to four years. We have also recently signed a memorandum of understanding (MoU) on allocating RM1 million in funding, where we will be working with five universities in Malaysia to embark on research and development (R&D) projects surrounding semiconductor materials, smart manufacturing, and artificial intelligence. 

We are excited to see the innovations that will stem from the R&D partnerships between Micron and the local universities, as well as witness how the public-private engagements groom future leaders with the essential talents of technical and soft skills as required by the industry. 

On the manufacturing front, we have also decided to invest in the construction of a second building in Penang during the pandemic. The construction of this building commenced in 2021 and is expected to be ready for manufacturing by end 2022. 

 In the second part of the interview, we discuss the innovations and challenges for the semiconductor industry in 2022. 

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