EG Industries to ramp up production with new Penang plant
04 May 2023
EG Industries Bhd is planning to set up a new plant that will help it ramp up production for its 5G modules, says Hong Leong Investment Bank (HLIB) Research.
This new two-storey Smart Factory 4.0 manufacturing facility in Batu Kawan, Penang will house approximately 10 to 15 lines. It can house approximately an additional 48 production lines for EG versus the 36 production lines now.
According to HLIB Research, EG signed a letter of intent with Customer C in October last year to produce advanced high-speed optical signal transmitter and receiver for 5G wireless network (optical modules) using photonics and semiconductor technologies.
“This collaboration 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, which will be used in serving both enterprise and residential markets across the globe, primarily America, Europe and Asia,” said the research firm.
It added that revenue contribution from Customer C has significantly increased from a meagre 8% in financial year 2022 (FY22) to 31% in the first half of FY23.
EG provides services in original equipment manufacturing and original design manufacturing with full turnkey solutions for completed final product assembly (box build), printed circuit board assembly, and modular components assembly.
EG currently has three manufacturing facilities in Malaysia and one manufacturing facility in Prachinburi, Thailand.
Source: The Star