KUALA LUMPUR, Dec 31 (Bernama) -- 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 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 global chips shortage.

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

About Simmtech

Since its establishment in 1987, Simmtech has been focusing on developing and manufacturing high-layer PCB for semiconductors. Equipped with its world best manufacturing competitiveness accumulated throughout the years, Simmtech produces the most advanced PCB to the semiconductor global leaders. The major products by Simmtech include module PCB for semiconductors' memory expansion and substrates for packaging semiconductor chip.

Simmtech is leading the technology evolution as a core supplier for package substrate to Tier-1 semiconductor customers. Notably, the company’s memory module PCB, BOC boards for DRAM package and Embedded Trace Substrate were awarded "World Class Products" by the Korean Government with the largest market share in the world. Simmtech went public in 2000 at Korea stock exchange market and is expected to reach 1.2 billion USD sales revenue this year.

Sustio Site Photo: https://bit.ly/3eAkw71

SOURCE: Malaysian Investment Development Authority (MIDA)

FOR MORE INFORMATION, PLEASE CONTACT: 
MIDA
Name: Ms. Azlina Hamdan
Director, E&E Division, MIDA
Tel: +603-2267 3791
Email: azlina@mida.gov.my

Simmtech Southeast Asia
Name: Ms. Michelle Chun
Office Manager
Tel: +65 8940 3088
Email: michelle.chun@simmtech.com

--BERNAMA