PETALING JAYA: KESM Industries Bhd will continue to focus on chips for the automotive market to grow its bottom line for the financial year ending July 31, 2022 (FY22).
The group’s executive chairman and chief executive officer Sam Lim noted that the automotive market was a fast-growing sector in the semiconductor industry.
“Moving into FY22, we will continue to focus on the automotive market which is a fast-growing sector in the semiconductor industry.
“Not only is the volume of global car sales rising, but the shift to electric vehicles and eventually self-driving cars is also creating higher electronic content for automotive semiconductors,” he said in a statement after the company’s 50th AGM yesterday.
KESM’s shares rose six sen to close at RM12.36 yesterday.
As technology shifts, demand for “burn-in and test” for Advanced Driving Assistance Systems, power train and infotainment will also increase, Lim commented.
“These developments are driving the need for more complex communication chips as well, beyond those used in car applications which have been one of the largest growing markets in the semiconductor industry,” he said.
“Test and burn-in are essential not only for cars but also for data security in protecting digital information and the growing needs for data analytics in connecting cars, smart buildings and medical records, among others,” he added.
KESM closed FY21 with an improved net profit of RM7.3mil from a break-even position in FY20.