Simmtech ramping up production volume


“We expect our packaging substrates and PCBs shipment volume to grow by a double-digit percentage over the next few years, " Simmtech South-East Asia managing director Jeffery Chun told StarBiz.

GEORGE TOWN: Simmtech Holdings’ first plant in Malaysia, Sustio Sdn Bhd, aims to produce more than RM600mil worth of packaging substrates and printed circuit boards (PCBs) per year.

The 385,000 sq ft plant located on an 18-acre site in Batu Kawan Industrial Park in Penang is now ramping up its production volume to serve its multi-national corporations customers in the industrial park.

“We expect our packaging substrates and PCBs shipment volume to grow by a double-digit percentage over the next few years.

“We will be actively looking to qualify local suppliers, and we are confident that we will find competitive local partners as this region has a robust electrical and electronic (E&E) industry ecosystem.

“The establishment of the plant will create opportunities for local companies through the vendor development programme in the areas of automation, supply of raw materials and quality control.

“This new plant will increase Simmtech’s overall production capacity by 20%,” Simmtech South-East Asia managing director Jeffery Chun told StarBiz.

According to Chun, the memory market will remain the largest semiconductor device market between 2021 and 2023.

It is projected to account for 31.4% of the overall semiconductor market in 2022.

“Simmtech produces about 30% of the global market share of memory modules and solid-state drive PCBs, which makes us the global leader in market share,” he said.

According to the research firm Market Research Guru, the global memory chip market size is about US$101.24bil (RM445.2bil) in 2022, and it is forecast to grow to US$151.93bil (RM668bil) by 2028 at a 7% compounded annual growth rate.

Chun said that Simmtech picked Batu Kawan to locate its plant because Penang had no memory chip packaging substrate and memory module PCB manufacturer to support the needs of the local semiconductor industry.

“Given the current semiconductor components shortage situation, we feel that it is necessary to support our customers to integrate their supply chain in Penang vertically.

“Our presence here will strengthen the supply chain resiliency in this region,” he said. Chun said that Simmtech is very likely to expand further in Penang in the coming years.

“We are now in discussions with the relevant authorities to explore the second phase of the expansion plan,” he added.

Through Simmtech’s new substrate and PCB factory, Penang will be an essential link in driving the global E&E supply chain.

“We have already engaged with our key customers for Sustio’s plant qualification programme and are expecting to start delivering to customers from the second half of this year,”

The plant has already employed more than 700 workers, and it will engage more than 1,000 employees by next year.

“We will hire a high-skilled workforce, especially Malaysians, in engineering, manufacturing and quality management.

“Our goal is to ensure we continue to groom fresh graduates,” he added.

The South Korea-based Simmtech develops semiconductor packaging substrates and high value printed circuit boards.

Founded in 1987, Simmtech is listed on KOSDAQ.

Simmtech’s sales revenue recorded more than RM4bil in 2021, with around 4,000 employees worldwide.

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