Kaohsiung – October 04, 2026 -- E&R Engineering Corp. (TWSE: 8027) will open its new Malaysian subsidiary, E&R Semiconductor (Malaysia) Sdn. Bhd., on October 13 in the Melaka Free Trade Zone, adding dedicated Southeast Asian capacity for its packaging materials business.

Melaka facility targets early 2027 mass production of carrier tapes

The plant, located in Phase III of the Batu Berendam Free Trade Zone, is currently running sample testing and qualification, with mass production of Embossed Carrier Tapes and Cover Tapes scheduled to start early next year. E&R said the site will create 50 local jobs and serve as a regional hub for semiconductor and OSAT customers.

Malaysia's $16.51 billion chip packaging market drives the shift

Malaysia accounts for roughly 13% of global backend packaging and testing capacity, with its semiconductor market projected to reach $16.51 billion by 2030. E&R is redirecting part of its packaging materials production to Malaysia while expanding total output, even as its existing China plant continues steady growth.

Local manufacturing shortens lead times for advanced packaging customers

The Melaka plant will supply high-precision carrier tapes with electrostatic discharge protection designed for chip miniaturization and Chiplet integration trends. E&R President KS Chen said the company is shifting production focus to Malaysia to address rising Southeast Asian demand while building a local field service engineering team for equipment support.

AK Ong, General Manager of the Malaysia plant, said the facility allows E&R to stay closer to customers with real-time support and strict quality monitoring at every checkpoint.