EG Industries signs LOI with CIG to produce 5G optical modules - MIDA | Malaysian Investment Development Authority
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EG Industries signs LOI with CIG to produce 5G optical modules

EG Industries signs LOI with CIG to produce 5G optical modules

26 Oct 2022

Electronic manufacturing services (EMS) provider EG Industries Bhd today signed a letter of intent (LOI) to strengthen its relationship with US-based Cambridge Industries Group (CIG) to produce advanced high speed optical signal transmitter and receiver for 5G wireless network (optical modules) using the photonics and semiconductor technologies for the latter’s global customers.

The aim is for CIG to transfer its 5G photonics modular technology to SMT Technologies Sdn Bhd, being its first-ever pioneer technology transfer to South East Asia.

With the LOI, EG Industries would add the 5G photonics modular products of transceivers into its portfolio, on top of expanding on the current and new range of wireless and wired access routers gateway products.

EG Industries group CEO and executive director Datuk Alex Kang said the telecommunications products it produce will be crucial in serving both enterprise and residential markets across the globe, primarily America, Europe and Asia, hence placing it in the forefront of a strong growth trajectory moving forward.

“As an original equipment manufacturing partner to CIG, we at EG Industries recognise CIG’s manufacturing and R&D expertise, and we’re the first EMS company producing the top-notch 5G photonics modular in South East Asia. We look forward to leverage on CIG’s expertise to increasingly enhance our capabilities as we gradually adopt smart manufacturing practices to attain greater heights,” he said in a statement.

CIG executive vice president Cliff Lin Chin Hung said its recent acquisitions into next-generation technologies including transceiver product lines place it favourably in optical module design and manufacturing for products for data center applications, which are in higher demand than ever before.

“Given our growth plans, it was apt for us to consider on-boarding the right manufacturing partner with the same mindset to support our future aspirations. Selecting EG Industries as our only manufacturing partner outside China thus far is testament to its forward-looking management, production expertise, growth plans and reliable delivery. We also have confidence in the skillsets of Malaysia’s workforce and overall competitive advantage in the long-term,” he remarked.

EG Industries’ first involvement with CIG was in 2018, producing box-build or full-assembly of wireless and wired access routers and gateway products for the enterprise and residential markets.

The company said the global 5G technology market, which was valued at US$5.1 billion (RM24.06 billion) in 2020, is projected to grow by a strong 65.8% on compounded annual basis to reach US$797.8 billion by 2030.

Source: The Sun Daily