Kontron Malaysia: Joint Collaboration in High Technology Industries

MIDA Insights - Special Feature

June - TC 1

Kontron is a global leader in embedded computing technology. With its employees in research and development, Kontron creates many of the standards that drive the world's embedded computing platforms. Kontron's product longevity, local engineering and support, and value-added services help create a sustainable and viable integrated solution for OEMs and system integrators. Kontron works closely with its customers on their embedded application-ready platforms and custom solutions, enabling them to focus on their core competencies. 

In 2005, Kontron Design Manufacturing Services (KDMS), a wholly owned Kontron AG subsidiary was set up in Penang, Malaysia. KDMS was in the business of design and manufacturing embedded and communications standards-based, rugged COTS and custom solutions for OEMs &and ODM systems integrators, and application providers in a variety of markets from avionics, medical, transportation, defence, industrial and IoT leveraging on majority local homegrown talents. In 2012, due to the continued effort of migrating towards the higher-margin business of systems and customer-specific solutions, the organisation structure of the manufacturing facility was transferred to another leading EMS partner to increase flexible working capital for Kontron and allow the Company to focus primarily on its core engineering capabilities. By expanding Kontron existing strategic production alliance, it enables Kontron to concentrate on its core competencies in providing superior engineering services with increased efficiency in operational expenses and working capital that will allow positioning Kontron for larger market penetration of higher gross margin design wins.

Along being the main backbone of engineering for Kontron on developing critical mission technologies, Kontron Malaysia collaborated with many local initiatives to assist in developing joint IPs for the local ecosystem. In 2014, Kontron was nominated to take on the role of industry leaders for the CREST (Collaborative Research in Engineering, Science and Technology) Connected Healthcare Cluster (CHC) in Malaysian initiative formed to drive relevant and farreaching technology advancements in the application of Internet of Things (IoT) in healthcare. Driven by the Malaysian Government through a partnership with CREST, the objective of CHC is to deliver patient-centric, affordable and quality healthcare services and solutions through a collaborative technology development approach between industry and academia. Kontron volunteered to be the cluster leader due to its substantial local R&D presence, the company’s global embedded computing market leadership in the medical equipment industry, and alignment of the company’s strategic directions. The Malaysian Government has recognised the roles of CREST and Kontron for their contributions to the National Internet of Things Blueprint of Healthcare. As a cluster leader, Kontron works closely with CREST to support other cluster members for successful implementation of CHC’s objectives. 

“The sharing of knowledge and ideas within the new CREST facility is also a catalyst for faster adoption of the IoT that can positively impact economic and social development, as well as setting the stage for additional IoT research, technology implementations and commercialisation,” said Kontron Chief Executive Officer Shanmuganathan. 

“As a cluster leader, Kontron works closely with CREST to support other cluster members for successful implementation of CHC’s objectives. The technical knowledge sharing and idea exchanges within the Cluster will inadvertently encourage IoT innovation and bring positive impacts to the country's economic and social development; as well as setting the stage for additional IoT research, technology implementations and commercialisation,” he added. 

To strengthen further Kontron Malaysia strong footprint in Asia, Kontron Malaysia now focuses more on critical mission technologies, particularly on avionics, transportation and defence by collaborating with global Kontron counterparts on technology transfer.

June - TC 3

June - TC 2


Kontron’s 30-year experience in more than 3,500 commercial and business jet installations worldwide, demonstrates our expertise in engineering avionics products resulting in the industry’s most advanced, cost-effective and certified IFE&C open platform solutions on the market. Our wireless connectivity products propel the future of the IoT “connected aircraft” to go beyond passenger entertainment to datadriven solutions that create greater operational efficiencies and new revenue streams. As a premier supplier of integrated hardware systems for the commercial aerospace industry, products include critical system components to enable in-flight broadband services including Internet, VPN access, email, multimedia capabilities, video-on-demand, games and additional entertainment choices in a fully integrated wireless cabin over a broadband airto- ground or air-to-satellite link. Kontron Malaysia is a member of MAIA (Malaysia Aerospace Industry Association).


Kontron’s standards-based commercial off the shelf (COTS) and custom products offer transportation OEMs worldwide presence and experience. Each global and local application in rail, road and shipping traffic demands specific computing technology, answered effectively with Kontron’s wide product portfolio and extensive experience in these transportation segments. Kontron's indepth knowledge of local and international standards and requirements simplifies application development by ensuring validated solutions. Developing, engineering, certifying and manufacturing through a single source guarantee the highest quality and ensure that standards such as ISO9001, EN50155, SIL4 documentation support are adhered to strictly.


Kontron offers the industry’s largest selection of military computing hardware solutions including application-ready COTS boards and platforms and rugged enclosures. Kontron Innovatively meets harsh environment reliability/ survivability and SWaP-C requirement with scalable and long-life cost platforms that address budget limitations. Kontron’s high performance embedded computing (HPEC) systems finally give military developers the advanced rugged architectures that balance processor power with I/O bandwidth to meet these needs. As COTS, standards-based multi-core platforms, Kontron’s state of the art products include the 3U StarVX based on next-generation Intel® processors offer leading-edge DSP performance and future proof APIs for sensor data processing applications.

Kontron Value Proposition to Local Eco Systems

Moving up the value chain or upgrading is the way forward for local Industries in the future. By developing and manufacturing higher value-added products, local industries will position themselves at a higher tier position within the global value chains. However, developing high-value product and technologies like avionics, transportation and defence require huge investments in R&D resources, developments infrastructure, development tools, software licenses, specialisation in different technologies certifications and advanced manufacturing. The shortage of know-how talent and the rightskilling for these technologies remains unanswered in Malaysia. These are the biggest challenge MNCs, and local industry face as the demand for a skilled workforce is more than the supply. These critical mission technologies and other cutting-edge innovations demand a multistakeholder ecosystem for skilling. Large corporations are able to make a major investment in R&D, but small and medium-sized enterprises (SME) are significant contributors to growth and job creation. Thus, the local industry must overcome company and industry boundaries by establishing new networks through collaboration with these technologies leaders like Kontron. This, in turn, would enable local industry players to tap into these new highvalue products and technologies that will help our local industry to grow. Today, most companies and even competitors can only succeed if they collaborate. Collaboration requires an open mind, skills and willingness to work with technology leaders. Kontron always explores local collaboration to create higher skilled local talents pools and joint develop products to penetrate new market segments in this region, particular in Avionics, Transportation and Defense sectors. Learn more at www.kontron.com.

June - TC 4


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Last Updated : Wednesday 30th September 2020