Zodiac, which is involved in high-frequency integrated circuit design competencies, packaging and testing capabilities, and satellite receiving system design and production, is planning to build its second production facility on a 202.34ha parcel in Malaysia.

“The group’s satellite chips are globally one of the largest selling, and have always been at the forefront of the industry in terms of technology,” Zodiac group chairman Chu Boon Tiong said.

“In response to the current international situation and market needs, the group has decided to set up its second manufacturing base in Malaysia for developing 5G chips and encapsulation.

“The first phase of the production facility will be built on a parcel of land, measuring 202.34ha, with an initial investment of RM1.5 billion,” he said.

Zodiac’s new development strategy stems from the need to mitigate risks brought about by the escalating China-US tensions and the Covid-19 pandemic.

Its first facility, which is located in Quanzhou, Fujian, China, has been operational since 2018.