Congatec, the Germany-based computing technology firm, today announced the establishment of its new subsidiary in Penang, Malaysia, marking a strategic expansion of its engineering and research footprint in Asia.

The move signals congatec’s commitment to anchoring high-value embedded computing design, customization and technical support capabilities in Malaysia as part of its global “local for local” strategy, congatec said in a statement.

As part of the expansion, congatec has onboarded an experienced embedded engineering team from Kontron Asia, comprising 23 specialized engineers, with plans to scale the Penang operation to approximately 70 employees over the medium term.

The new subsidiary strengthens congatec’s regional research and development (R&D) and technical support capabilities, enabling faster development cycles, application-ready (aReady.) solutions and closer collaboration with customers across the Asia-Pacific (APAC) market.

“Penang’s 50 years of industrialization has shaped a deep and highly skilled talent base spanning engineering, design, manufacturing, and advanced technologies. This long-standing industrial maturity enables investors like congatec to scale R&D, technical support, and regional operations efficiently, supported by talent that is both globally competitive and industry-ready,

“We are confident that congatec’s presence will generate meaningful technological spillovers for Penang. The integration of ‘Designed in Germany’ quality standards with Penang’s robust industrial ecosystem—supported by our highly skilled talent—will create strong synergies for innovation and growth,” said Loo Lee Lian, Chief Executive Officer of InvestPenang

Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), said congatec’s expansion to establish its R&D subsidiary in Penang exemplifies Malaysia’s shift towards high-value, innovation-driven activities within our electrical and electronics ecosystem.

“This investment underscores the growing recognition of Malaysia as a strategic location for advanced embedded computing capabilities. By anchoring sophisticated engineering and technical support functions here, we strengthen domestic R&D capacity, accelerate technology adoption, and create meaningful career pathways for Malaysian engineering talent,

“Aligned with the New Industrial Master Plan 2030, congatec’s expansion contributes to Malaysia’s position as a competitive hub for next-generation embedded and edge computing innovation in the region,” he added.

Dr. Dominik Ressing, Chief Executive Officer of congatec, stated the opening of the firm’s Malaysian subsidiary is a natural next step in its ‘local for local’ philosophy.

“Regional development and support resources enable us to respond faster and more precisely to local requirements,

“Our goal is to improve customers’ time-to-market, total cost of ownership, and return on investment through local engineering expertise, while reducing barriers to application development across the APAC region,” he added.

Konrad Garhammer, Chief Operating Officer (COO) and Chief Technology Officer (CTO) of congatec, added this new location in the “Silicon Valley of the East”, the firm gains access to an outstanding ecosystem of semiconductor manufacturers and production partners.

“This enables us to combine our German engineering DNA with the dynamism of the Asian market,” he said.

According to him, the new team brings extensive experience in developing highly integrated embedded computing platforms, enabling the firm not only to expand its portfolio but also to deliver maintenance and support services within its customers’ time zones.

“Furthermore, we are gaining vital capabilities across production, production support, and production engineering – expertise we plan to expand further,

“These are decisive factors in ensuring operational excellence,” he added.

According to the statement, the Penang center will support the APAC market with standard and customized embedded computing platforms developed in alignment with congatec’s “Designed in Germany” quality standards.

In addition to advanced x86-based solutions based on Intel and AMD processors, the team will develop Computer-on-Modules (COMs leveraging technologies from Qualcomm, Texas Instrument, and NXP), alongside expanded aReady. software and solution stacks.

These validated platforms are designed to shorten design-in cycles, reduce non-recurring engineering costs and accelerate customers’ time-to-market.

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