KUALA LUMPUR, December 31 – Simmtech, a South Korean- based global leading manufacturer for Printed Circuit Board (PCB) and packaging substrate for semiconductors, is currently constructing its first large scale factory in Southeast Asia at Batu Kawan Industrial Park, Penang, Malaysia.
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 factory will be manufacturing the region’s first packaging substrates for dynamic random-access memory (DRAM) / NAND memory chips and High-Density Interconnect (HDI) PCB for memory module / Solid State Drive (SSD) devices and operations expected to commence in the second quarter next year.
“Given the supply constraint globally, it is absolutely critical that our Penang project goes full swing to manage the supply chain. With the synergistic support from the Federal government agencies especially Malaysian Investment Development Authority (MIDA) and the State government agencies, our greenfield project is chartering in lightning speed to ramp up capacity to our major customers in this region” said Mr. Jeffery Chun, the Managing Director at Simmtech Southeast Asia. Dato’ Arham Abdul Rahman, Chief Executive Officer of MIDA shared that
“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. MIDA welcomes Simmtech and their prospects in nurturing Malaysians to equip themselves with the technological skills for the current industry’s needs and beyond.
We are confident that Simmtech will only stand to gain here in Malaysia.” The project will be invested via its Malaysian subsidiary, Sustio Sdn. Bhd. with the total investment of RM508 million benefitting local businesses with opportunities to be integrated in the global value chain. The new factory in Penang are anticipated to create more than 1,000 high-skilled jobs in engineering, manufacturing and quality management, by the first half of 2022.
Furthermore, through the new substrate and PCB factory, Malaysia’s robust ecosystem as a hub for advanced manufacturing will be strengthened, while serving as an important link in driving the global semiconductor value chain. Amidst a depleted supply of chips globally, the steady surge in demand for high-performance computing and memory products catalysed the customers to design co-development programmes with Simmtech to get the products from the newly certified facility, and successfully multiply mass production in the shortest turnover time.
Mr. Chun added, “With this co-development programme with our key customers, we are confident that our project will not only be completed in time and primed for the market, but also be ready for production at full capacity as soon as we commence operations next year.” As one of the world’s largest players in the semiconductor industry, the Penang factoryserving as a manufacturing plant for the region’s first packaging substrates will position Simmtech as a differentiator from our competitors, thereby jumpstarting the dynamics of global chips shortage.
