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Monday, 29 August 2016

IDT to make new generation sensors by end-2016

GEORGE TOWN: Integrated Device Technology (Malaysia) Sdn Bhd (IDT) will start the production of new generation of sensors at its newly upgraded RM20mil Bayan Lepas facility by the end of 2016.

IDT vice-president (global operations) and chief technology officer Sailesh Chittipeddi told StarBiz that the facility with an added 10,000sq ft production floor would manufacture temperature, environmental, optical, and gas sensors.

“The sensors are used in the automotive and industrial sectors, which will grow to be key contributors of the group’s revenue in the near future.

“The upgraded facility now has the TS16949 certification to manufacture and test automotive parts and components.

“For the 2017 financial year ending next March, IDT plans to ship out of Penang some 575 million chips, compared to 500 million prior to the expansion,” Sailesh said.

The group plans also to grow its workforce to 550 from 500 by this year end.

“We will also spend US$10mil to US$15mil per year as capital expenditure to upgrade the facility here, compared to US$4mil previously” he addd

In late 2015, IDT acquired the Automotive and Industrial Division (formerly ZMDI) a Dresden-based company specialising in automotive, sensing, and power management products for US$307mil.

“This acquisition will boost our production of automotive, sensing, and power management products,” he added.

Sailesh said the group would continue to invest in Penang, as the market its products had increased to US$10bil in 2016 from US$3.6bil in 2013.

“We expect the operations in Penang to generate around 80% of the revenue of the group for the 2017 fiscal year ending next March,” he added.

Besides manufacturing and testing, the Bayan Lepas plant also does the research and development to increase the efficiency of packaging and testing the chip-sets.

IDT has facilities in California, Tempe in Arizona, Ottawa in Canada, and Dresden in Germany that focus on chip designing activities.

Headquartered in San Jose, California, IDT, which has a market capital of about US$2.5bil, specialises in making timing, high-speed mixed-signal design, serial interconnects, memory interfaces, power management, signal conditioning, and radio frequency chips.

IDT spend about 20% of its revenue for research and development work, and own over 900 patents for high-end analogue chips.

Tags / Keywords: Stocks , Earnings , Corporate News , Investing , Integrated device

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