XFUSION INVESTS RM1.7 BLN TO SET UP GLOBAL SUPPLY CENTRE IN PENANG

xFusion International Pte Ltd, a global provider of computing power infrastructure and services, has chosen Malaysia to house its maiden global supply centre with an investment value of RM1.7 billion for the next three years.

Chairman and chief executive officer Jeffrey Liu said the 2.36-hectare facility in Perai, Penang, will be a key hub for its international market, with an annual production capacity of over 150,000 units of equipment, including graphics processing unit (GPU) server.

He said the annual production capacity would cover around 80 per cent of the global shipments outside of China.

"NationGate Holdings Bhd has been appointed as xFusion's strategic partner to manufacture GPU servers for the global market.

"Together with home-grown electronics manufacturing services (EMS) provider NationGate as the strategic partner, the venture marks Malaysia's continued presence in the global growth of the industry, which has expanded by an average of 30 per cent in the last five years in China alone," he told reporters here today.

Liu said the opening of the global supply centre in Penang is an important milestone in the company's overseas growth strategy.

He said the state-of-the-art centre would strengthen its worldwide supply network to ensure continuous, consistent delivery of products and services in its key market.

"Towards meeting the strong and evolving demands of the computing industry, we also plan to establish research and development centres in Malaysia and Singapore and increase our investment in the region.

"Together with local partners, we believe we will further strengthen Penang’s position in the global electronics and semiconductors industry," he added.

He said that in addition to being a renowned high-tech manufacturing hub, Penang, also known as the Silicon Valley of the East, would be an ideal location for xFusion to set up the facility due to the local availability of highly skilled workforce and the mature local supply chain as well as the proximity to its business partner NationGate.

"With the increasing importance of digital infrastructure cutting across multiple sectors, we are excited for our new chapter here in Malaysia, which is well-positioned to further support the industry's growth," he added.

Meanwhile, NationGate managing director Ooi Eng Leong said the company's appointment as xFusion's strategic partner is a testament to its growing capability and competency as an established EMS provider.

"With 12 years of operating history in Penang, NationGate provides EMS manufacturing services and technical support to its customers, many of whom are multinational companies from high growth industries such as networking and telecommunications, industrial instruments, data computing, consumer electronics, automotive and semiconductor.

"The appointment will further support NationGate's journey to improve our expertise along the value chain in order to solidify our position as a renowned one-step EMS provider," he added.

Penang Chief Minister Chow Kon Yeow officiated the global supply centre.