KESM Industries Berhad the world’s largest independent burn-in and test service provider reported its first six months of FY202 financials which the group saw its revenue increase marginally by 3 percent to RM132.9 million from RM129.1 million, however, net profit dipped by 8 percent from RM7.1 million to RM6.5 million.
CEO Sam Lim, Executive Chairman “The momentum of our stellar performance in the first quarter was disrupted by the coronavirus pandemic in our second-quarter results.” “We responded expeditiously to safeguard employees’ health and took several measures to address delivery lags,” he explained.
He added, “Component deliveries in the supply chain remain tight and prices continue to escalate. The Group is taking strategic steps in scaling down its Electronic Manufacturing Services and re-sizing its workforce to give greater focus to
its burn-in and testing sales activities.” Mr. Lim explained, “We provide test and burn-in services for a wide variety of semiconductor chips such as power modules for mobile devices and data processing, sensors, microcontrollers, etc. for cars.
According to two leading sources in market research, the world-wide semiconductor revenue is expected to expand by 25.1 percent to US$583.5 billion in 2021 and is expected to continue its trajectory growth to US$680.6 billion this year.
Mr. Lim remarked, “Signs are pointing to strong growth in semiconductors.
Demands for chips are growing in a number of markets such as Artificial Intelligence, communication, medical etc. Making chips reliable is essential and KESM is setting
aside RM100 million investments for capital spending in calendar year 2022.”
