LEM opens a current-sensor factory in Penang

The Penang opening

LEM Holding opened its manufacturing plant at Penang Science Park on 19 April 2024, with investment of 15 million Swiss francs, approximately 78 million ringgit. The facility manufactures and tests current sensors, including integrated semiconductor current sensors. At the opening, Penang Chief Minister Chow Kon Yeow forecast 500 job opportunities. He described applications across automotive, renewable energy, robotics, industrial and instrumentation markets, and anticipated skills development for the local workforce.

The initial investment proposal

In January 2020, LEM announced plans to invest between five million and ten million Swiss francs in a new Penang production site. CEO Frank Rehfeld said the plant would give the company greater flexibility in responding to geopolitical events affecting customers' supply chains. The announcement envisaged an inauguration during financial year 2021/22, around 50 employees in the first year and up to 250 at full capacity after five years. The proposed operation would complement the company's main manufacturing sites in China, Bulgaria and Switzerland. These were the investment and staffing expectations announced at that stage.

The June 2022 construction milestone

LEM's 23 June 2022 release described a ceremony marking progress in constructing the plant. Its revised project outline included:

A 12,000-square-metre production facility for manufacturing and testing integrated current sensors.
Investment of about 15 million Swiss francs in construction and initial equipment.
First products expected in the first quarter of 2024.

Chairman Andreas Hürlimann described Penang as a strategic location for diversifying supply chains and serving customers in Asia, Europe and the United States. Rehfeld also raised the possibility of adding research and development capabilities as manufacturing developed.

Handover and preparations for production

In its 10 November 2023 half-year announcement, LEM reported that the Penang facility had been handed over and teams had moved into the premises. It expected the first products for export to be manufactured before the end of 2023, bringing the production start forward from the earlier schedule. Group selling, general and administrative costs increased by 11.8% to 35.1 million Swiss francs for April–September 2023. LEM attributed that increase to digitalisation projects and build-up costs for the Malaysian facility.