Simmtech ready to open new Malaysian factory in 1Q22
The South Korean manufacturer of PCBs and packaging substrate for semiconductors, is currently constructing its first large scale factory in Southeast Asia at Batu Kawan Industrial Park, Penang, Malaysia.
Despite the challenges due to the onset of Covid-19, the construction of Simmtech's new facility is right on track and scheduled for completion in the first quarter of 2022, reports the Malaysian Investment Development Authority (MIDA).
Once completed, the factory will be manufacturing the region’s first packaging substrates for dynamic random-access memory (DRAM) / NAND memory chips and High-Density Interconnect (HDI) PCB for memory module / Solid State Drive (SSD) devices and operations expected to commence in the second quarter next year.
“Given the supply constraint globally, it is absolutely critical that our Penang project goes full swing to manage the supply chain. With the synergistic support from the Federal government agencies especially Malaysian Investment Development Authority (MIDA) and the State government agencies, our greenfield project is chartering in lightning speed to ramp up capacity to our major customers in this region” said Mr. Jeffery Chun, the Managing Director at Simmtech Southeast Asia, in the press release.
The South Korean company will invest – via its Malaysian subsidiary, Sustio Sdn. Bhd. – MYR 508 million (about EUR 106 million) in the project. The new Penang factory is anticipated to create more than 1,000 high-skilled jobs in engineering, manufacturing and quality management, by the first half of 2022.
Mr. Chun continues to state in the press release that he is confident that the project will not only be completed in time and primed for the market, but also be ready for production at full capacity as soon as the company commence operations in 2022.
