© BSL Corporation Business | November 18, 2021
BSL to supply semiconductor components to SDU
Ban Seng Lee Industries Sdn Bhd (BSLI), a subsidiary of Malaysian BSL Corporation, has secured a Letter of Award from SD Unify Pte Ltd (SDU) to fabricate semiconductor components and sub-assembly modules.
“The value of the LOA is USD 3.5 million and involves the manufacture of Integrated Console, Sheetmetal Fabrication, Precision Machining, Modular Assembly, Metal Stamping and PCBA & Electrical Component to SDU. The supply to SDU would be made in phases and in accordance to Purchase Order issue by SDU,” says Brian Hoo Wai Keong, the Executive Director of BSL, in a press release On 10 November 2021, BSL Corp entered into Share Sale Agreement to acquire 51% of SDU. This acquisition is still pending completion. SDU is a company based in Singapore that is on the Approved Vendor List (AVL) of several major semiconductor equipment manufacturers and operates an International Procurement Office. This is complemented by the company's “One Stop Solution” for the manufacturing, sourcing and supplying of electromechanical products such as metal components, metal casing and metal fabrication for semiconductor equipment producers which include semiconductor foundry equipment manufacturers. “The acquisition of SDU is a strategic step by BSL in pivoting the Group’s business to better utilize its current manufacturing capability and capacity. This will enable the Group to shift the current exposure from the tradition segment of consumer electronics, agriculture and industrial products into semiconductor segment. We are positive on the prospects of SDU given the current supply crunch of semiconductor chips which is expected to last for the for the next 12 to 24 months. The demand is across the board; arising from demand in basic microcontrollers and memory chips to the most sophisticated high-performance processors. There is now competing demand from the major sectors such as computing, wireless communications and automotive,” Brian Hoo explains in the press release. He also said that the acquisition of SDU is expected to jump-start BSL’s entry into the semiconductor segment and that BSL will be able to provide the manufacturing capacity and capability to support SDU’s customer demand. “We view this new market segment as a potential engine of growth to revive the Group’s operations as we transition to becoming an EMS company.”
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