Nasdaq-listed TTM Technologies to set up US$130 million plant in Penang
25 Apr 2022
Nasdaq-listed printed circuit boards (PCBs), radio frequency (RF) components and RF microwave/microelectronic assemblies manufacturer TTM Technologies Inc is investing US$130 million (about RM550 million) to set up a plant in Penang.
In a joint statement on Monday (April 25) in conjunction with the plant’s ground-breaking ceremony, Malaysian Investment Development Authority (MIDA), InvestPenang and TTM said the latter’s expansion to Penang is in direct response to customer requirements for advanced technology PCB supply chain resiliency and diversification in regions beyond China.
They said TTM selected Penang as the location for this new plant after an extensive review of multiple countries with careful consideration of investment and operating costs, customer proximity and supply chain support.
Penang is also attractive due to its well-established electrical and electronics (E&E) industry ecosystem.
The new plant will serve TTM’s global commercial markets including networking communications, data center computing, and medical, industrial, and instrumentation.
Penang Chief Minister Chow Kon Yeow said Penang is recognised as one of the major players in the global semiconductor industry, particularly in the areas of assembly and test as well as equipment manufacturing.
“The state, via InvestPenang, strives to bolster our efforts to outpace investors’ expectations by providing continuous facilitation and utmost support along the journey,” he said.
This state-of-the-art, highly automated plant will be built upon approximately 27 acres of industrial land at Penang Science Park.
Construction is expected to take 12 to 15 months followed by equipment installations in mid-2023.
Pilot production is targeted to begin in the second half of 2023, with volume production commencing in 2024 and gradually ramping up to full Phase 1 capacity in 2025.
TTM expects the new plant to achieve full run rate revenue of approximately US$180 million (approximately RM761.5 million) in 2025.
The factory has also been planned to support a 25% upside Phase 2 expansion.
TTM president and chief executive officer Thomas Edman said the plant marks the start of an important new chapter to support customers with differentiated high value-add engineering and PCB product solutions on a global basis.
“As an early-mover into Southeast Asia for the production of advanced technology PCBs, TTM is responding to our customers’ needs for supply chain resiliency, regional diversification and growth capacity,” he said.
Source: The Edge Markets