JF Tech poised to double capacity to meet demands


  • Technology
  • Saturday, 15 Aug 2020

During the movement control order (MCO), not many companies were allowed to operate as usual. Those only in essential services got the greenlight to continue with their operations.

JF Technology Bhd is one of the companies that was in full operations during the MCO.

“Fortunately the authorities were understanding and allowed us to continue with operations as usual.

“This is because we had orders to fulfil and could not afford to shut down, ” says the managing director of JF Tech Datuk Foong Wei Kuong.

JF Tech plays a specialist role in the highly dissected technology eco-system. It manufacturers test sockets that essentially weeds out the faulty chips from the good ones.

“Fortunately the authorities were understanding and allowed us to continue with operations as usual. “This is because we had orders to fulfil and could not afford to shut down, ” says the managing director of JF Tech Datuk Foong Wei Kuong. (Pic shows Foong with one of the workers at the factory.).“Fortunately the authorities were understanding and allowed us to continue with operations as usual. “This is because we had orders to fulfil and could not afford to shut down, ” says the managing director of JF Tech Datuk Foong Wei Kuong. (Pic shows Foong with one of the workers at the factory.).

Its equipment caters for high volume testing of electronic chips that are very small in sizes.

For instance a typical handphone will have a few hundred ships. Each and every one of the chip goes through a test process to ensure that it is not faulty. There are companies that provide the “eye testing” of the chips, which essentially is to see that there are no external defects on the chips.

JF Tech provides services that ensure the chip is working and it is not defective. Its product is designed for high-volume testing of thousands of chips that come in varies shapes and sizes. Displaying a base product on his palm, JF Tech’s chief executive officer Dillon Atma Singh says that the value is almost equal to the prize of a MyVi. “The products are highly specialised and there are not many players out there, ” says Dillion, who comes with more than 30 years’ experience in the area of testing in the electronics industry.

As orders are strong, JF Tech is running at full steam and hence looking at expanding its factory located at Kota Damansara in Selangor. As the end of last year, it was already operating at more than 75% capacity and now it is almost at full capacity.

Towards this end, the company has proposed a placement. The proceeds from the placement would go towards expanding its capacity by about 60%. At the moment, JF Tech’s total built-up area is 46,000 sq ft and it will increase to 90,000 sq ft.

“The bulk of the proceeds from the placement would go towards building additional facilities. We are also allocating one floor to go into Test Interface services, ” says Foong.

Test Interface is another area of testing in the electronics sector. It allows JF Tech to move higher up in the value chain where there are less competitors and better margins.

In the last seven years, JF Tech has been consistently profitable with a decent balance sheet. Its revenue has been growing and the company is in a net cash position. After the rights issue, the company is expected to have enough cash for even further expansion.

For Foong who founded the company in 1999, he wants to move up the value chain in the area of testing where the company gets involved even at the stage of when the chip is being designed. “Today JF Tech can provide the whole testing programme from the initial stages when the chip is being designed. Last time the testing programme used to come from the US, ” he says.

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