South Korean semiconductor giant, Simmtech Holdings Inc., has chosen Penang as the strategic location to build its ‘first in the region’ printed circuit board (PCB) and packaging substrate factory.

Simmtech’s Phase One investment in Penang, through its subsidiary Sustio Sdn Bhd, is US$120 million (RM508 million).

Simmtech Southeast Asia managing director Jeffery Chun said the construction of the factory on an 18-acre site in Batu Kawan, Penang, was currently ongoing.

“We have spent many years looking for the right location to expand our business. We are now operating in our home country Korea, as well as in China and Japan.

“Our future factory in Penang will enable us to bring our products closer to our customers in this region.

“The construction works are scheduled to complete by early next year. We hope to begin operating and making shipments from our new factory by the first half of next year,” he said in his speech during the investment announcement held virtually today.

Chun said Penang has a very well-established electronics industry ecosystem.

“We are able to access the resources and local businesses here. The state is full of great talents, and it has a strong customer base. Penang also has a dynamic and growing semiconductor industry.

“That was why we chose to invest in Penang,” he said.

Chun added the company recognised the current challenging pandemic period.

“We are in close communication with the local and Federal authorities, following the standard operating procedures (SOPs).

“However, we do not see major delays in our construction project,” he said.

He revealed that the Covid-19 pandemic brought more opportunities to the semiconductor market.

“There are increasing demands for data storages with the increase in online data transactions during this trying period.

“There are more demands for computer chips and mobile chips. This is a great period for the semiconductor industry as a whole,” he said.

On Simmtech’s investment in Batu Kawan, Chief Minister Chow Kon Yeow said the new facility could create 1,200 high-value jobs in engineering, manufacturing, and quality management.

“I am hopeful that with Simmtech’s arrival, this is the beginning of a new chapter with Korea – one of the prominent countries in the global technology sphere.

“The Penang government has placed emphasis on attracting companies with strong commitments in developing cutting-edge technologies and sustainable investing. Those commitments are part of our efforts to cement Penang’s position as a hub for advanced manufacturing.

Chow said that Penang continues to be the country’s leading Electrical and Electronics (E&E) hub and a key pillar of Malaysia’s external trade.

“In 2020, Penang recorded a commendable RM310 billion of exports and RM110 billion of trade surplus; contributed 32% and 60% of the country’s said total, respectively.

“Notably, Penang’s E&E exports were valued at RM231 billion in 2020, which formed more than half of the country’s total,” he said.

Source: Buletin Mutiara