Taiwanese electronics manufacturing services company Hotayi Electronic (M) Sdn. Bhd. has broken ground on MYR 500 million ($113 million) smart factory expansion in Malaysia.

The firm said in a statement on Friday that the firm has launched its Phase 3 expansion in Batu Kawan, Penang.

The investment will create a cutting-edge smart manufacturing facility spanning 380,000 square feet.

The project will generate 1,000 new high-skilled jobs in the region.

“Our Phase 3 expansion represents a major milestone in Hotayi’s journey to redefine manufacturing excellence,

“By integrating cutting-edge smart factory technologies, we aim to enhance quality, efficiency, innovation and sustainability while supporting our customers’ evolving needs,” said Goh Guek Eng, Chief Executive Officer of Hotayi Electronic.

The expansion will feature advanced automation, artificial intelligence (AI)-driven analytics, and internet of things (IoT)-enabled processes, reinforcing Hotayi’s leadership in smart manufacturing.

This investment also aligns with Malaysia’s New Industrial Master Plan 2030, which focuses on technological advancements and local talent development.

“Since its establishment in 1992, Hotayi has been continuously investing in the operation here in Penang,

“The firm’s continuous investment in Penang highlights the confidence Hotayi places in Penang’s existing robust industrial ecosystem, which enables the company to thrive and grow,” said Chow Kon Yeow, Chief Minister of Penang.

Since its establishment, Hotayi has been a key player in Malaysia’s electronics industry, continuously investing in infrastructure and talent to support global customers.

This latest expansion also reflects its confidence in Malaysia as a strategic manufacturing hub, said the statement.

“Hotayi’s latest investment reflects Malaysia’s continued progress in high-tech manufacturing and its growing reputation as a global electronics hub,

“This expansion not only drives innovation and smart manufacturing but also strengthens the broader industrial ecosystem, supporting a more resilient and efficient supply chain,” said Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA).

“MIDA remains committed to facilitating strategic investment like this, ensuring they create high-skilled job opportunities for Malaysians, contributing to sustainable economic growth and talent development,” he added.

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