Broadcom exports to hit RM65bil next year, says Mustapa
BATU KAWAN: Broadcom’s exports for 2018 are expected to hit around RM65bil, making it the biggest semiconductor and electronic exporter from the country.
International Trade & Industry Minister Datuk Seri Mustapa Mohamed said that the amount would comprise about 8% of the country’s total exports.
“Currently, the largest exporter is Western Digital with RM20bil worth of hard disk drive products,” he said.
Mustapa spoke at a press conference held after the opening of Broadcom Ltd’s global distribution warehouse at Batu Kawan Industrial Park.
Also present were Penang Chief Minister Lim Guan Eng, Mida deputy chief executive officer Datuk Phang Ah Tong, and Broadcom senior vice president (global operations) Datuk BC Ooi.
Mustapa said about 30% of would go to the US.
“Some 30% of the raw materials used for the products would be sourced locally, while the other 30% from overseas,” he added.
He added that Broadcom had plans to invest RM4.1bil to expand further over the next 10 years its entire supply chain operations based in Malaysia for global production planning, quality management, strategic procurement, and logistics management.
On the new warehouse, Mustapa said it would store Broadcom’s products that were manufactured in the US, Taiwan, South Korea, Thailand, and Malaysia for world- the exports wide distribution.
Previously Broadcom shipped its products from Singapore.
“The new facility is undeniably a welcome boost to Malaysia’s logistics industry.
“Given that 90% of its products will be exported via airfreight, there would be increased usage of Malaysia’s airport facility with about 300 million to 500 million units of products being shipped per week,” he added.
Mustapa added that Malaysia was now ranked seventh as the world’s largest exporter of electrical and electronic products totalling RM287bil last year.