E&R Engineering Corp. (TWSE: 8027), a global semiconductor packaging equipment supplier, will inaugurate its Malaysian subsidiary, E&R SEMICONDUCTOR (MALAYSIA) SDN. BHD., in the Melaka free-trade zone on Oct. 13, following an announcement dated Oct. 5, 2026. The company is responding to rising Southeast Asian demand by transferring part of its packaging-materials production from China to Malaysia while expanding overall capacity. The plant is undergoing sample trials and qualification procedures, with mass production planned for early next year. It is expected to create 50 local jobs and improve supply for semiconductor and OSAT (outsourced semiconductor assembly and test) customers in Southeast Asia. Located in Phase III of the Batu Berendam free zone in Melaka, the site will produce embossed carrier tapes and premium cover tapes locally. E&R says the facility will shorten delivery times and provide high precision, strong electrostatic discharge (ESD) protection and durable packaging interfaces for trends including chip miniaturization and chiplet integration. The Malaysian operation will also serve as a regional base for E&R field-maintenance engineers, supporting local recruitment and faster technical and after-sales assistance. Malaysia accounts for about 13% of global backend semiconductor packaging and testing capacity, while its semiconductor market is projected to reach $16.51 billion by 2030 with strong policy support.