South Korean semiconductor giant, Simmtech Holdings Inc., through its Malaysia-based subsidiary, Sustio Sdn Bhd, has officially opened its new manufacturing facility in the Batu Kawan Industrial Park (BKIP) today.

Simmtech Southeast Asia managing director Jeffery Chun said it is the company’s first advanced manufacturing facility in Southeast Asia that is based in Penang.

“It is also our eighth factory along with other operations in Korea, China, and Japan.

“In May last year, Sustio broke ground on an 18-acre site at BKIP, investing more than RM600 million.

“Despite the lockdown caused by the Covid-19 situation, the practical construction work took only nine months to complete, and the factory is now fully equipped and ready to run mass production.

“This new factory has already employed more than 700 workforces and it will reach its full employment of more than 1,000 employees by next year.

“This new factory will also deliver the first ‘Made in Malaysia’ semiconductor memory chip packaging substrate and printed circuit board (PCB), bolstering Malaysia’s semiconductor supply chain even further,” Chun said in his speech at the opening ceremony today.

Also present were Bukit Tambun assemblyman Goh Choon Aik, Chief Minister of Penang special investment adviser Datuk Seri Lee Kah Choon, InvestPenang chief executive officer Datuk Loo Lee Lian, South Korea’s ambassador to Malaysia Lee Chi Beom and Malaysian Investment Development Authority (Mida) (investment development) deputy chief executive officer Lim Bee Vian.

According to Chun, the new factory in Penang would increase Simmtech’s total capacity of substrate and PCB by 20%.

“This will immediately contribute to improving the semiconductor industry supply constraint situation which can aptly address the needs among the industry players.

“We have already engaged with our key customers for the new site qualification programme and are expecting to start delivering a mass volume of substrate and PCB products to the customers from the second half of this year.

“At the same time, we are very grateful to Malaysia’s Federal Government agency through Mida and the Penang government agency, InvestPenang, for their tireless support of our project. We couldn’t have navigated our project under the challenging environment without them,” Chun added.

Chief Minister Chow Kon Yeow, who graced the ceremony, said the Penang government is pleased to see an emergence of players along the semiconductor supply chain.

“This has enabled the state to reap a myriad of benefits from the increased robustness of its well-developed industrial ecosystem.

“Being the first major Korean investor from the semiconductor industry in Penang and a critical supplier for memory module PCB and substrate, the presence of Simmtech, through its Malaysia-based subsidiary, Sustio, is poised to bring greater opportunities for supply chain resiliency.

“The state government via InvestPenang, and other relevant state agencies are committed to ensuring a versatile talent pool, supportive infrastructure, and resilient industry clusters.

“These are among the imperatives for effective supply chain management and sustained competitiveness, all of which are believed to add value to Sustio’s operation in Penang.

Source: Buletin Mutiara