Broadcom Launches RM59m Global Distribution Warehouse in Penang 【博通公司全球配件货仓开幕礼】槟博通分销仓库投入运作

2017 Sep 19, Tuesday

Broadcom Launches RM59m Global Distribution Warehouse in Penang

SEBERANG PERAI, Sept 19 — Leading semiconductor supplier Broadcom Limited opened a new RM59 million global distribution warehouse in Batu Kawan here today.

The warehouse, which will complete the backend of Broadcom's supply chain, will ship over 90 per cent of Broadcom's products directly to its customers.

“Broadcom's estimated export revenue by 2018 will be around RM65 billion, so it will be the largest electronics and electrical exporter in the country,” said International Trade and Industry Minister Datuk Seri Mustapa Mohamed in his speech.

He said the largest electrical and electronics exporter in Malaysia now is Western Digital, which commanded an export revenue of RM20 billion.

“Broadcom's export revenue will greatly surpass Western Digital and its exports alone will take up 8 per cent of the overall exports in Malaysia, not only in E&E,” he said during a press conference after officiating the opening of the warehouse this morning.

He said the company may have only invested RM59 million in its new facility in Penang, but its impact on the industrial and manufacturing ecosystem will be significant.

It will create business opportunities for local small-medium industries and enterprises, the local supply chain and also the logistics industry, he added.

“In addition to this global distribution warehouse, which is managed by its principal hub, the company has plans to expand further with business spending of RM4.1 billion over the next 10 years such as in global production planning, quality management, strategic procurement and logistics management,” he said.

He said Broadcom will import 30 per cent of its chips from the United States, 30 per cent is from the local supply chain, and the rest from other countries.

“In its export, it will also only export 30 per cent to America and 70 per cent is to other countries,” he said.

“United States should not be concerned about huge trade deficits because what we export to America is the same as what we import from them,” he added.

Mustapa said Malaysia is now the world's seventh largest E&E exporter, with exports totalling RM287.7 billion last year.

“This industry has shown an upward trend in export for the past three years to contribute 36.6 per cent of total exports and 44.6 per cent of total manufacturing exports in 2016,” he said.

Broadcom Limited first started out as part of Hewlett-Packard in the Bayan Lepas Free Industrial Zone in 1972.

It was formerly known as Avago Technologies Limited before changing its name to Broadcom Limited in February last year after acquiring US-based Broadcom Corporation.

The company currently has 1,100 employees in its facility in Bayan Lepas and 350 in the new facility in Batu Kawan.

Source: The MalayMail Online

【博通公司全球配件货仓开幕礼】槟博通分销仓库投入运作 贸长:出口额料达650亿 

(大山脚19日讯)贸工部长拿督慕斯达法指出,随着博通有限公司(Broadcom Limited)分销仓库全面投入运作后,预计未来可达到600亿至650亿令吉的出口额,占大马总出口额的8%,届时该公司将成为大马电子电器领域最大出口商。











Broadcom sets up warehouse in Malaysia, plans RM4.1b investment

KUALA LUMPUR (Sept 19): American semiconductor player Broadcom Ltd, which has set up its global distribution warehouse in the Batu Kawan Industrial Park in Penang, plans to spend RM4.1 billion over the next 10 years to expand its business here further.

This investment, according to Minister of International Trade and Industry Datuk Seri Mustapa Mohamed in a statement today, will be spent on, among others, areas like global production planning, quality management, strategic procurement and logistics management.

As for the new facility it has set up in Batu Kawan, Mustapa said Broadcom's global inventory for products being manufactured in the US, Taiwan, South Korea, Thailand and Malaysia will be centrally stored right here before being distributed worldwide.

"This new facility is undeniably a welcome boost to Malaysia's logistics industry. Given that 90% of its products will be exported via air freight, it would increase the usage of Malaysia's airport facility with approximately 300 to 500 million units of products being shipped per week.

"In fact, Broadcom's estimated future export revenue is more than RM60 billion once its principal hub is fully operational, making Broadcom the largest E&E exporter in Malaysia," he said during the opening ceremony of Broadcom's global distribution warehouse today.

The facility will be managed by Broadcom's principal hub, he said, which will also support its global subsidiaries in undertaking research and development activities.

"This would further strengthen Malaysia's E&E ecosystem and create vast business opportunities for companies in supporting industries. Broadcom has certainly played an active role in supporting the local supply chain, benefitting contract manufacturers," said the minister.

According to the Malaysian Investment Development Authority (MIDA), Malaysia has, over the last decade, achieved significant progress in the electrical & electronics (E&E) industry that resulted in the growth of new businesses and creation of jobs.

The country, it added, is now the world's seventh largest exporter of E&E products with a total export of RM287.7 billion last year.

Source: The Edge Market

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