Bosch Opens New Penang Semiconductor Backend Site To Test Automotive Chip

To meet the high demand for semiconductors in the automotive industry, Bosch has established one of Asia's most advanced semiconductor backend chip sites in Penang for final chip testing of its automotive chips and sensors.

According to The Star, Bosch plans to invest approximately 350 million EUR (RM1.62 billion) in the Batu Kawan Industrial Park (BKIP) site until the middle of 2030.

The new test facility is more than 18,000m2 in size and includes clean rooms, office space, and quality assurance and manufacturing laboratories. It will employ up to 400 people by the middle of the next decade.
Penang is now Bosch's largest location in Southeast Asia, with a workforce of 4,200. The fully connected plant is said to be one of Southeast Asia's most advanced semiconductor test centres.

Malaysia is an important hub in the global semiconductor supply chain for back-end chip manufacturing. It is estimated that the country accounts for approximately 13% of global back-end manufacturing. According to official figures, Penang has generated more than 5% of global semiconductor revenue in recent years.

Semiconductor manufacturing is divided into two stages: front-end manufacturing and back-end manufacturing. The circuits are attached and patterned on the wafers in the front-end stage
At Bosch, for example, this work is done in the clean rooms of the wafer fabs in Reutlingen and Dresden. The individual chips are then separated from the wafers, assembled, and tested at the back end.
Bosch currently performs the majority of its semiconductor final testing in Reutlingen, Germany, Suzhou, China, and Hatvan, Hungary.
These locations will collaborate with the new Malaysian hub. Bosch will immediately begin testing semiconductors manufactured at the company's front-end facility in Dresden, among other places.
“Semiconductors are key to the success of all Bosch’s business areas. The Penang backend site is a key component in our growth strategy in the mobility sector as we respond to the increased demand for semiconductors. We chose to invest in Penang for its high level of semiconductor knowledge and skilled workforce.
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The proximity to business partners and customers is another advantage, as it will shorten delivery times and distances for the chips,” said Klaus Maeder, member of the Bosch mobility sector board responsible for operations.