Simmtech invests RM508 mln in large scale semiconductors factory in Penang
31 Dec 2021
South Korean-based manufacturer for printed circuit board (PCB) and packaging substrate for semiconductors, Simmtech via its subsidiary Sustio Sdn Bhd is investing RM508 million to build the first large scale factory in Southeast Asia at Batu Kawan Industrial Park, Penang.
Despite the challenges due to the onset of COVID-19, the facility’s construction is right on track and scheduled for completion in the first quarter of 2022, the company said in a statement today.
It said the new factory are anticipated to create more than 1,000 high-skilled jobs in engineering, manufacturing and quality management, by the first half of 2022.
Simmtech Southeast Asia managing director Jeffery Chun said it was absolutely critical that the Penang project goes full swing to manage the supply chain, given the semiconductors supply constraint globally.
“With the synergistic support from federal government agencies especially Malaysian Investment Development Authority (MIDA) and state government agencies, our greenfield project is chartering in lightning speed to ramp up capacity to our major customers in this region,” he said.
MIDA chief executive officer Datuk Arham Abdul Rahman said the electrical and electronics (E&E) manufacturing industry is rapidly evolving.
“More and more companies are demanding knowledge-intensive, hi-tech and innovative activities.
“MIDA is targeting more front-end and back-end semiconductor players as well as their supply chains to consider Malaysia as an alternative site for their production,” he added.