by TMR / pic by TMR FILE

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 South-East Asia at Batu Kawan Industrial Park, Penang.

The facility’s construction is right on track and scheduled for completion in the first quarter of 2022 (1Q22) despite the challenges due to the onset of Covid-19, said the Malaysian Investment Development Authority (Mida) in a statement yesterday.

The project will be invested via its Malaysian subsidiary, Sustio Sdn Bhd with a total investment of RM508 million benefitting local businesses with opportunities to be integrated into the global value chain.

The factory will be manufacturing the region’s first packaging substrates for dynamic random-access memory/NAND memory chips and high-density interconnect PCB for memory module/solid state drive devices and operations are expected to commence in the 2Q22.

“Given the supply constraint globally, it is critical that our Penang project goes into full swing to manage the supply chain. With the synergistic support from the federal government agencies especially Mida and the state government agencies, our greenfield project is chartering at lightning speed to ramp up capacity to our major customers in this region,” said Jeffery Chun, the MD at Simmtech South-East Asia.

MIDA CEO Datuk Arham Abdul Rahman said the electrical and electronic manufacturing industry is rapidly evolving 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,” said Arham.

The new factory in Penang is 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.

“Amid 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,” said Mida.

Penang factory serving as a manufacturing plant for the region’s first packaging substrates will position Simmtech as a differentiator from its competitors.