Texas Instruments Inaugurates High-Tech TIEM2 Factory in Melaka

Jan 2026

Global semiconductor leader Texas Instruments (TI) has officially opened its second state-of-the-art assembly and test factory in Melaka, known as TIEM2. The inauguration, held on November 6, 2025, marks a major milestone in the company’s 50-year history in Malaysia. Representing a potential investment of up to MYR 5,000 million (USD 1,250 million), the six-level facility spans 900,000 square feet and is physically connected to TI’s existing Melaka plant, creating a combined manufacturing footprint of over 1.4 million square feet.

The TIEM2 facility is now fully operational, engineered to assemble and test billions of analog and embedded processing chips annually. These chips are critical for sectors ranging from automotive and industrial automation to smartphones and data centers. Equipped with advanced factory automation for bumping, probing, and testing, the site is a key component of TI’s global strategy to internalize 90% of its assembly and test operations by 2030. When fully ramped, the expansion is expected to support up to 500 high-quality local jobs, further solidifying Melaka’s position as a vital hub in the global semiconductor supply chain.

In line with TI’s commitment to sustainable manufacturing, the factory is on track to achieve LEED Gold certification. The site utilizes advanced equipment to minimize energy, water, and waste consumption per chip, demonstrating TI’s focus on responsible production. During the opening ceremony, Melaka Chief Minister Datuk Seri Utama Ab Rauf Yusoh highlighted the investment as a strong endorsement of the state’s industrial potential. This expansion complements TI’s established presence in Kuala Lumpur, where a separate MYR 9,600 million (USD 2,400 million) investment is also underway to scale the company’s internal manufacturing capabilities.

(Sources: Texas Instruments Incorporated; Power Semiconductors Weekly)

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