The new production line will be based on the Frunze Nizhny Novgorod Plant, one of Russia's oldest producers of electronic equipment, Governor Valery Shantsev said after a meeting with Andrew Oung Da Ming, the Malaysian company's chairman and founder.
"We are planning to produce 0.11-0.13 micron microchips at the Frunze plant, and 0.065 micron chips in the future, as well as solar batteries and microelectronic equipment for the automotive industry," the press service said.
Russia's economics ministry said on September 6 that French carmaker PSA Peugeot Citroen was considering Nizhny Novgorod as the main site for a plant in European Russia.
The first stage of production at the Malaysian company's new plant will be launched in the third quarter of 2008, and output is expected to account for $2 billion in the final stage.
Kedah Wafer Emas has founded a number of companies in Russia, China, Singapore, the United States and Australia. The Malaysian company founded subsidiary Unique IC, which works in optoelectronics and consumer electronics, in Zelenograd just outside Moscow in 2000.