The new PCB (printed circuit board) factory built in Malaysia by the Passive System Alliance (PSA) of Taiwan, China, China, has started operation. This electronic parts manufacturer hopes to meet the strong demand for AI servers and auto parts. The opening of the factory has doubled the company's PCB production capacity in Malaysia, and this move comes at a time when the global technology industry is driving supply chain diversification.

PSA's Elna company stated that the factory will produce the highest end PCB technology to meet the needs of automobiles, servers, network equipment, and personal computing.

Elna started building the factory in 2022 and has invested over 1 billion ringgit (229 million US dollars) in Penang. The company stated that by the end of 2024, the annual PCB production capacity of the first phase of investment will reach 300000 square feet (28000 square meters), bringing its total production capacity in Malaysia to 600000 square feet. If fully utilized within three years, the production capacity can be expanded by more than three times, reaching one million square feet.

PCB manufacturer PSA acquired Elna in early 2018. Afterwards, PSA was able to use Elna's production facilities in Malaysia and Japan. Other companies are also diversifying their production locations. TTM Technologies from the United States and Simmtech from South Korea are also increasing PCB production capacity in Penang, while PCB material supplier Elite Materials is expanding its investment in Malaysia this year.

Malaysia and Thailand have benefited from the transfer of server supply chains. Server suppliers SuperMicro and Weiying are building factories in Johor, Malaysia, while leading AI server manufacturer Guangda Computer has server production capacity in Thailand.

Malaysia is also seeking to restart its semiconductor supply chain, with leading power chip manufacturer Infineon and PCB manufacturer AT&S opening new factories earlier this year.