November 11, 2025 /SemiMedia/ — Texas Instruments (TI) has begun operations at its second packaging and test facility in Melaka, Malaysia, marking another step in strengthening its global semiconductor manufacturing network. The new plant, known as TIEM2, is expected to package and test billions of analog and embedded chips annually.

TI said the total investment for TIEM2 could reach about US $1.198 billion, with full operations creating up to 500 local jobs. Equipped with advanced automation and backend assembly technologies, the facility handles bumping, probing, assembly and testing for high-volume analog and embedded devices used across automotive, industrial, and consumer electronics applications.

The new site covers more than 900,000 square feet and is connected to TI’s existing Melaka plant. Combined, both facilities provide over 1.4 million square feet of manufacturing space, serving as a major backend production hub for the company.

TI currently operates 15 manufacturing sites worldwide, spanning wafer fabrication, packaging, and test operations. Since establishing its first Malaysian site in 1972, the company has expanded steadily across Melaka and Kuala Lumpur.

The company said it aims to meet about 90% of its packaging and testing needs internally by 2030, part of its long-term plan to enhance supply chain resilience and maintain tighter control over production. The new Melaka facility underscores TI’s commitment to vertical integration and sustained investment in semiconductor manufacturing capacity.