KUALA LUMPUR: Malaysia’s largest semiconductor wafer foundry, Silterra Malaysia Sdn Bhd (Silterra), is investing RM645mil on an expansion plan that will increase its annual capacity by 20%.
The investment, sourced from capital injections by shareholders and internally generated funds, will increase Silterra’s annual capacity from 8.3 million (as at end-July 2021) to 10 million mask layers by early 2023, Bernama reported, referencing a statement from Dagang Nexchange Bhd (DNeX).
DNeX group managing director and Silterra executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the investment shows shareholders’ commitment to equipping the company with best-in-class manufacturing capabilities to expand capacity.
“The initiatives implemented thus far to transform Silterra into a profitable and resilient technology company have yielded results. In the past six months, our de-bottlenecking and process improvements exercise have resulted in improved productivity and efficiency levels,” he said.
He noted that Silterra is poised for further growth in view of the strong demand for semiconductors and prevailing capacity constraints within the industry, due to the high demand for electric vehicles, Internet-of-Things, data centres and electronic commerce.
Syed Zainal Abidin said the recently inked long-term agreements with ChipOne Technology (Beijing) Co Ltd and Taiwan-based ILI Technology Corp will provide stable business for Silterra in the event of a market downturn.
“All in all, the execution of our business roadmap has been progressing well. Alongside the continual positive outlook of the semiconductor industry and our investment, we believe there is still ample room for Silterra to deliver stronger results, moving forward,” he added.
Silterra is a strategic investment of DNeX and the Beijing Integrated Circuit Advanced Manufacturing and High-End Equity Investment Fund Centre (Ltd Partnership).