E&R Engineering Corp. (TWSE: 8027) will inaugurate E&R SEMICONDUCTOR (MALAYSIA) SDN. BHD. in the Melaka Free Trade Zone on Oct. 13, 2026, expanding packaging-materials production beyond its steadily growing China plant. The facility, located in Phase III of the Batu Berendam Free Trade Zone, is undergoing sample testing and qualification, with mass production planned for early next year and 50 local jobs expected. E&R is transferring part of its production to Malaysia while increasing overall capacity to serve semiconductor and OSAT (outsourced semiconductor assembly and test) customers across Southeast Asia. The plant will locally produce embossed carrier tapes and cover tapes, supporting shorter delivery times, high precision, electrostatic discharge protection and advanced packaging applications including chip miniaturization and chiplet integration. It will also serve as a regional hub for E&R semiconductor-equipment field-service engineers and localized technical and after-sales support. Malaysia accounts for about 13% of global backend packaging and testing capacity, while its semiconductor market is projected to reach $16.51 billion by 2030 with policy support.