GEORGE TOWN: Sustio Sdn Bhd (SSB), a Malaysia-based subsidiary of Simmtech Co Ltd, is set to expand its production line in Penang.
The second phase of investment, valued at US$50 million, is expected to be completed by the first quarter of 2023.
South Korea-based Simmtech is the leading global manufacturer of semiconductor packaging substrates, and high-density interconnect (HDI) printed circuit boards (PCB).
The expansion project will double the HDI PCB production capacity while creating an additional 400 full-time jobs for Malaysians.
Simultaneously, SSB will work with local companies to enhance its localisation programme, further thriving the country's semiconductor ecosystem.
Commenting on the momentous milestone, International Trade and Industry (MITI) Minister Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz said Simmtech's fast-tracked expansion of their subsidiary's operation in Malaysia proved that the country continues to be a preferred destination for high-value investments.
"This is due to our industry's strategic position in the global electrical and electronics (E&E) value chain and the availability of skilled Malaysian talent in this sector.
"This expansion project also supports the country's New Investment Policy (NIP), whose aims include nurturing innovative, high impact and high-tech investments that help create more higher-paying jobs, which is key to the country's long-term socio-economic upliftment and sustainable growth," he said.
Penang chief minister Chow Kon Yeow said it was heartening to witness a growing number of investors deepening their roots in Penang.
"Having announced its presence in mid-2021 and today, an expansion plan, the continued confidence of SSB reaffirms the competent platform in Penang for industry players to thrive.
"SSB's expansion not only brings positive spillovers in building local capacities in the PCB and substrate industries but also plays a pivotal role in stimulating the competitiveness of the semiconductor material cluster in Penang, all of which will strengthen the state's position in the semiconductor sector," he added.
Meanwhile, Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Wira Arham Abdul Rahman said this expansion project was a testament to SSB's strong confidence in Malaysia as a preferred investment hub, manifesting the rising trajectory of our economic recovery and the bright prospects for even more robust growth.
"Leveraging on the country's comprehensive electrical and electronics (E&E) ecosystem, the capability of our local talent, as well as our mature semiconductor supply chain, will support SSB's long-term growth and provide vital building blocks for the company to expand in the region.
"We anticipate that SSB's project will have a ripple effect on job creation as well as the development of our local supply chain capabilities to meet the rapidly changing requirements of our E&E industry segments while encouraging innovation in emerging fields," he said.
Thus, Arham said, MIDA remained committed to growing the domestic E&E and semiconductor industries, working hand-in-hand with our strategic investors such as SSB.
Simmtech SE Asia managing director Jeffery Chun said the decision on SSB expansion showed the Simmtech management team's strong and determined pledge to invest in Malaysia.
He said the successful opening of the first Malaysian factory in Batu Kawan, the rising global semiconductor hub, gave SSB a clear mandate to continue its expansion.
As outlined in Simmtech's initial business plan, the company's second phase of expansion will be carried out over five years.
However, acknowledging Malaysia's business and manufacturing ecosystem's competitive edge and reputation as the ideal destination for global and regional business expansions, Simmtech has decided to advance its future investment plan to 2023.
Earlier this year, Simmtech invested US$150 million to complete the SSB's 18-acre manufacturing site, and it is currently hiring over 1,200 full-time local talents.