Advanced Silicon Battery Maker Enovix Expands to Penang with Strategic YBS Partnership

Advanced silicon battery manufacturer Enovix has charted an ambitious expansion into Southeast Asia, establishing its primary high-volume production facility in Penang, Malaysia through a partnership with YBS International Berhad. The collaboration marks a significant step for the company as it scales manufacturing capabilities to address growing global demand for next-generation battery technology.

Strategic Partnership in Penang Region

Under the terms of a non-binding Letter of Intent signed with YBS International Berhad, a Malaysia-based investment holding company, Enovix will establish Fab-2 within an existing YBS facility at the Penang Science Park. This location positions the company within Malaysia’s established semiconductor and manufacturing ecosystem.

The partnership structure is particularly notable: YBS has committed to taking a substantial equity stake in the inaugural production line—designated Gen2 Line 1—while simultaneously securing financing through local banking institutions. Jackie Yong, CEO of YBS, emphasized the company’s confidence in Enovix’s technology and market potential, noting that YBS would provide not only capital for equipment but also building infrastructure and operational support through established relationships with multiple financial institutions and local authorities.

Manufacturing Capability and Production Scale

The Gen2 Autoline represents a technological leap forward compared to Enovix’s first-generation production systems. The new manufacturing approach achieves approximately 10 times faster throughput than its predecessor, enabling substantially improved production efficiency. When fully operational, Gen2 Line 1 is projected to produce more than nine million batteries annually—a capacity designed to support Enovix’s expanding customer base in computing devices, mobile technology, IoT systems, and electric vehicles.

Dr. Raj Talluri, President and CEO of Enovix, underscored that establishing manufacturing infrastructure and assembling local leadership represents crucial groundwork for delivering silicon-anode lithium-ion batteries to market while managing robust customer demand.

Building Regional Talent and Operations

To operationalize this expansion, Enovix has established Enovix Malaysia Sdn. Bhd. and recruited two senior leaders to drive operations. Loganathan Muniandy, bringing over 22 years of operations and leadership experience from positions at high-growth organizations including Lumileds Malaysia, joins as Vice President of Malaysia Operations with responsibility for manufacturing oversight and facility scaling. Wan Ilham, a human resources professional with more than 25 years of experience in manufacturing environments, assumes the role of Malaysia Human Resources Director, tasked with building and retaining the operational team.

Ajay Marathe, Chief Operating Officer of Enovix, highlighted the region’s competitive advantages: a deep talent pool of semiconductor-trained engineers with manufacturing expertise and a business climate favorable for long-term operations. The company is pursuing 15-year Pioneer Status certification to strengthen its commitment to sustained operations in the Penang region.

Regional Support and Market Positioning

The Malaysian Investment Development Authority and regional economic bodies have signaled strong support for Enovix’s establishment. The decision to locate advanced battery manufacturing in Penang aligns with Malaysia’s positioning as a regional investment hub and reflects the country’s strategy to attract innovative technology companies and create skilled employment opportunities, consistent with Malaysia’s national development planning.

For Enovix, the Penang location offers access to established supply chains, skilled engineering talent trained in semiconductor manufacturing disciplines, and a regulatory environment designed to encourage long-term technology investment—factors that collectively support the company’s growth trajectory and ambitions to scale advanced battery production to meet accelerating global electrification trends.