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South Korea-based printed circuit board (PCB) manufacturer, Simmtech, will be investing RM508mil to set up its first large-scale factory at the Kawan Industrial Park in Penang.

Simmtech and the Malaysian Investment Development Authority (Mida) said in a joint statement that the new factory will create more than 1,000 high-skilled jobs in engineering, manufacturing and quality management by the first half of 2022.

“The factory will be manufacturing the region’s first packaging substrates for dynamic random-access memory chips and high-density interconnect PCB for memory module/solid state drive devices.

“Operations are expected to commence in the second quarter of next year.”

In the same statement, Simmtech South-East Asia managing director Jeffery Chun said it was “absolutely critical” that its Penang project goes full swing, given the global supply constraints currently.

“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 the region.”

Simmtech and the Malaysian Investment Development Authority (Mida) said in a joint statement that the new factory will create more than 1,000 high-skilled jobs in engineering, manufacturing and quality management by the first half of 2022.

Simmtech and the Malaysian Investment Development Authority (Mida) said in a joint statement that the new factory will create more than 1,000 high-skilled jobs in engineering, manufacturing and quality management by the first half of 2022.

Chun said he was confident that the project would not only be completed on time and primed for the market, but also be ready for production at full capacity as soon as Simmtech commences operations next year.

“As one of the world’s largest players in the semiconductor industry, the Penang factory serving 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 the global chip shortage,” he said.

Mida chief executive officer Datuk Arham Abdul Rahman also shared that the electrical and electronics manufacturing industry was rapidly evolving.

“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 its 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,” he said.

The project will be invested by Simmtech’s Malaysian subsidiary, Sustio Sdn Bhd.

Through the new substrate and PCB factory, Simmtech and Mida said 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, Simmtech said the steady surge in demand for high-performance computing and memory products has catalysed the customers to design co-development programmes with the group to get the products from the newly certified facility.

Source: The Star, Technology/December 31, 2021

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