New subsidiary, Sustio, completes vertical integration
of Malaysia’s semiconductor backend supply chain
The evolution of the memory chip packaging substrate has been nothing short of extraordinary. Its interlinking functions are integral to a myriad of electronic architectures and devices on three primary areas – super scale data centres, intermediate usage for large and medium-sized organisations and the personal computer industry, which continues to undergo a hyper-evolution phase. This includes the quest for smaller and nimbler devices that demands a simultaneous increase in memory, storage, and data transfer capabilities.
To serve the evolutionary needs of the global memory chip packaging substrates and printed circuit board (PCBs), Simmtech Group, the global top tier manufacturer in this sector, through its subsidiary, Sustio Sdn. Bhd., recently commenced its third advanced manufacturing facility, outside of Korea, at Batu Kawan Industrial Park, Penang, Malaysia.
This is the eighth facility for the KOSDAQ-listed Simmtech Group, which recorded sales revenue of more than RM4 billion in 2021 and holds the largest market share among the world’s top five memory players.
Since Sustio’s grand opening ceremony of its 18-acre site on May 9 2022, the company has already employed more than 700 people and is set to reach its full employment capacity of more than 1,000 employees by next year.
The new Penang advanced manufacturing facility will deliver the first “Made in Malaysia” semiconductor memory chip packaging substrate and module/Solid-State Drive (SSD) PCB, completing the vertical integration of the semiconductor backend supply chain with its global customers located in the same industry park.
The underlying rationale for Simmtech’s direct investment into Batu Kawan, Penang is multifold. Firstly, it is fuelled by the integrated Electrical and Electronics ecosystem that is prevalent in Penang and is aligned to the vision to strengthen the supply chain resiliency in this region. Given the current semiconductor component shortage situation, Sustio sees it imperative to proactively engage and support its customers by enhancing and fast-tracking their vertical supply chain integration.
In addition to the above, Simmtech’s preferred choice for locating its facility in the Batu Kawan Industrial Park is also to serve as Malaysia’s “missing link” as there had not been a memory chip packaging substrate and memory module PCB manufacturer to support the needs of the local semiconductor industry. Sustio’s presence will in turn provide opportunities to local vendors and suppliers through its vendor development programme in the areas of automation, supply of raw materials, supporting services and quality control.
Grand opening ceremony of Sustio Sdn. Bhd. – (L-R), Min Chul Kim (Chief Purchasing Officer of Simmtech
Group and Managing Director of Sustio Sdn. Bhd.), Lim Bee Vian (Deputy CEO MIDA, Investment
Development), Lee Chi Beom (Ambassador of the Republic of Korea to Malaysia), YAB Chow Kon Yeow (Chief
Minister of Penang), Se Ho Chun (Chairman Simmtech Group), May Park (Director, Simmtech Group),
Gursharan Singh (Senior Vice President, Micron Technology), Dato Seri Lee Kah Choon (Special Advisor to the
Chief Minister of Penang on Economic Affairs), Jeffery Chun (Managing Director, Simmtech Southeast Asia)
The primary goal for Sustio is underpinned by developing and grooming highly-skilled local talent in the areas of engineering, manufacturing and quality management to ensure the growth and expansion of its operations in Malaysia. The career proposition will be very attractive as the local talent pool will be privileged to work hand in glove to co-develop and qualify Malaysian manufactured products with the top 5 global memory players.
It is envisioned that with the cohesive facilitation provided by The Ministry of International Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA), InvestPenang, Ministry of Human Resources, TalentCorp, and all other relevant state and federal government authorities, Simmtech’s strategic move into Malaysia will set the stage for more companies, particularly fellow Korean players to start engagements that will help identify Malaysia as their preferred investment destination.
(From left) Managing Director for Simmtech South East Asia, Jeffery Chun, delivering Sustio’s first made in Malaysiamemory chip packaging substrate to Mr. Gursharan Singh, Senior Vice President of Micron Technology at the recently held grand opening ceremony of Sustio Sdn. Bhd.