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US firm Applied Engineering to set up high-tech ops in Penang

US firm Applied Engineering to set up high-tech ops in Penang

15 Jul 2021

US-based Applied Engineering (AE) from San Jose, California will be establishing a joint venture (JV) plant with Malaysian counterpart, QES Manufacturing Sdn Bhd (QES) at Batu Kawan Industrial Park in Penang later this year.

Both parties signed an agreement to establish Applied Engineering Technology (M) Sdn Bhd (AET) to provide high-tech electromechanical contract manufacturing services.

This ranged from prototyping to high volume, through its New Product Introduction (NPI) process and advanced custom solutions, the Malaysian Investment Development Authority (Mida) said in a statement today.

“The JV is designed to cater to the specific needs of clients in the semiconductor equipment manufacturing, life science and medical devices, defence, and aerospace market segments, not only in Malaysia, but also to Asean countries and China,” Mida added.

The proposed initial investment for AET is RM5 million, with an initial workforce of 20 workers, comprising mainly engineers and technicians. 

The investment is set to expand up to RM20 million over the next three years. 

The company looks to kick-start its operations in a temporary premise before moving to its new factory in Batu Kawan Industrial Park during the fourth quarter of 2022.

Mida chief executive officer Arham Abdul Rahman said the electrical and electronics (E&E) and related services industries continued to assume a critical role in Malaysia’s industrial development.

The sectors are part of the critical global supply chain and ecosystem to support other high technology industries. 

“Over the years, Malaysia has developed a reputable skilled talent pool, facilitative investment environment, as well as deep integration with international supply chains, offering the ideal mix for high-tech investors in the industry,” he added.

Applied Engineering president Jack Yao said Malaysia would provide the launching pad to  its move to expand outside the US to service its major customers in Malaysia and Asia Pacific. 

“AE will bring its latest generation of high-end technologies to Malaysia and builds up a whole new technology sector. 

“A significant number of R&D activities are also planned for this new location. Malaysia can benefit its position as a technology-country and can strengthen the region as a high-tech manufacturing hub in Asia Pacific,” he added.

Chew Ne Weng, president of QES Group Bhd, said it would support the high technology equipment manufacturing project using its established networks across Asean, China and other parts of Asia for AET to expand from Malaysia.

Source: NST

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