Construction of Simmtech's RM508m semiconductor factory in Penang scheduled for completion in 1Q22

KUALA LUMPUR (Jan 3): Simmtech, a South Korea-based manufacturer of printed circuit board and packaging substrate for semiconductors, via its subsidiary Sustio Sdn Bhd is investing RM508 million to build the first large-scale factory in Southeast Asia at the Batu Kawan Industrial Park, Penang.

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 (1Q22), the company said in a statement on Friday (Dec 31).

It said the new factory is anticipated to create more than 1,000 high-skilled jobs in engineering, manufacturing and quality management by the first half of 2022 (1H22).

Simmtech Southeast Asia managing director Jeffery Chun said it is absolutely critical that the Penang project goes full swing to manage the supply chain, given the semiconductor supply constraint globally.

"With synergistic support from federal government agencies, especially the Malaysian Investment Development Authority (MIDA) and state government agencies, our greenfield project is chartering at lightning speed to ramp up capacity to our major customers in this region,” he said.

MIDA chief executive officer Datuk Arham Abdul Rahman said the electrical and electronics 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," he added.

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