(Yicai) May 19 -- Trensor, a Chinese manufacturer of pressure sensors for the automotive and industrial fields, has kicked off construction at its first overseas factory in Malaysia.

Trensor's Malaysian subsidiary Trensor Electronics held a groundbreaking ceremony at the Penang Technology Park @Bertam in Malaysia's northern Penang state on May 17, the Wuxi-based parent company announced on the same day.

The facility, in which Trensor is investing about MYR100 million (USD23.2 million), will span 10,000 square meters. Expected to begin mass production in the second quarter of next year, the plant will have an annual output capacity of 10 million pressure sensors and will generate over RM200 million a year in sales. It will be fully automated and provide 200 local jobs.

Penang's Chief Minister Chow Kon Yeow, Penang's State Executive Councillor for Local Government, Town, and Country Planning H'ng Mooi Lye, and other representatives from various local organizations attended the groundbreaking ceremony.

"This investment will contribute to strengthening Penang's electrical and electronics industry, anchoring Penang as a hub for precision engineering, automotive components, and value-added manufacturing," Chow said at the ceremony.

"The decision by Trensor to establish its first-ever overseas factory in Penang, Malaysia, was driven by the state's world-class infrastructure, business-friendly governance, high quality of life, cultural affinity, and abundant pool of high-tech talent attracted to the 'Silicon Valley of the East,'" said Zhou Wenbo, general manager of Trensor Electronics.

Penang has emerged as a critical hub in the global semiconductor supply chain, contributing more than 5 percent of global semiconductor exports. The electrical and electronics sector remains Penang's main industry, attracting MYR7.8 billion (USD1.8 billion) in approved investments, which represent 45 percent of the state's total investments.

"Our investment in Malaysia isn't merely transferring production capacity but also a crucial step in our globalization strategy," Zhou told Yicai at the 21st Shanghai International Automotive Industry Exhibition at the end of last month. "In the long term, this will enhance our overall competitiveness through global deployment."

Trensor's products are already used in the air conditioning systems of vehicles from Perodua, Malaysia's best-selling car brand with a local market share of over 40 percent last year, through indirect supply channels. With a local factory, Trensor will be able to better serve Malaysian customers and further expand into Southeast Asia.

Trensor specializes in piezoresistive ceramic thick film pressure sensors for automotive applications. About 60 percent of its revenue comes from exports, primarily to North America and Europe. The company is the supplier of global automakers, including Ford Motor and Geely Automobile Holdings, and tier-one suppliers, such as Cummins and Hanon Systems.

"The global semiconductor industry remains an important part of technological development, with growing demand driven by advancements in technology areas including artificial intelligence, fifth-generation network, electric vehicles, and the Internet of Things," Chow noted.

"Despite ongoing geopolitical developments, the sector is still expected to grow in the long term, with estimates suggesting the global market value could reach USD1 trillion by 2030," he added.

For Trensor, growth opportunities are expanding with the rise of vehicle electrification and intelligent systems, particularly because features like air suspension systems become standard in mid-price vehicles and thermal management systems grow more sophisticated in new energy vehicles.

Editor: Futura Costaglione