TTM Technologies eyes 10% revenue from upcoming Penang plant
24 Jul 2022
NASDAQ-listed TTM Technologies Inc, which has earmarked a capital investment of about RM550 million through 2025 for its first Southeast Asian manufacturing plant to be located in Penang, expects about 10 per cent of its future revenue to be derived from this operations.
TTM Technologies chief executive officer Tom Edman said the company decided with a greenfield facility here so that it would be able to build the facility from the ground up with a real Industry 4.0 approach to the printed circuit board (PCB) manufacturing.
He said the decision to set up this greenfield facility in Malaysia, particularly in Penang, was to meet its customers’ demands for supply chain resiliency, facility volume capability for high-tech PCBs outside of China as well as Malaysia’s infrastructure capability.
“TTM Technologies’ total size right now is about US$2.5 billion (US$1=RM4.45), taking into account the recent acquisition we announced on the defence side of our business.
“The new facility is a significant part of our future and we are looking at slightly less than 10 per cent coming from this facility,” he told Bernama.
On future expansion, Edman said the site of the Penang facility has room for phase two and it would be able to construct another building to accommodate an additional 25 per cent capacity.
However, he said TTM Technologies’ future expansion would not be confined to the site and it would not oppose the idea of exploring other locations if it is successful with this facility.
“We are optimistic about our customer reaction to this facility. We expect the Penang facility to be operating at full rate in 2025 and that is when we will decide on future expansion,” he said.
The facility’s pilot production is scheduled to begin in the second half of 2023 and the investment is expected to create 800 jobs over a period of three years in the manufacturing of advanced printed circuit boards (PCBs) such as high layer count and high-density interconnect (HDI).
The new plant would serve TTM’s global commercial markets including networking communications, data centre computing, medical, industrial and instrumentation.