TTM to build new PCB factory in Malaysia
The US PCB manufacturer says it will open a new highly automated PCB manufacturing facility in Penang, Malaysia, as the company is looking to offer customers alternate sourcing for PCBs in lower cost regions.
The company says that the decision to build the new factory is a direct response to TTM's customers’ increasing concerns about supply chain resiliency and regional diversification, and in particular, the need for advanced multi-layer PCB sourcing options in lower cost regions.
With this new manufacturing footprint, TTM says in a press release that it will get access to an additional growth vector by attracting demand from existing and new customers looking for cost competitive PCB manufacturing outside of China.
The facility, which the company expects to start constructing during 2022 and have equipment installed in 2023, will be located at the Science Park in Penang on a twenty-seven acre production site. The current plan is to run initial pilot production in the second half of 2023, with volume production starting in 2024.
The company will spend USD 130 million to make this project a reality, with the investment will be spread between 2022 through 2025. The company says it has already received a number of long term customer commitments connected to this new venture.
“As many of our customers have been more focused on the reliability of their supply chains, I am excited to announce that TTM will build a new manufacturing facility in Malaysia to offer our commercial customers an alternate lower cost manufacturing region for sourcing advanced PCBs,” says Tom Edman, CEO of TTM, in the press release. “Not only will this facility provide a new opportunity for growth, TTM will be regionally more diversified, providing more long term stability, and further improving our position to serve the needs of all stakeholders – customers, suppliers, investors and employees.”
Volume production is as stated earlier expected to start in 2024 – this will then gradually ramp to full Phase 1 capacity of about USD 180 million revenue in 2025. TTM continues to say that the new factory is planned to support a 25% upside Phase 2 expansion.