EG Industries signed a Letter of Intent (LOI) to strengthen its relationship with Research and Development (R&D) and manufacturing firm US-based Cambridge Industries Group (CIG) to produce Advanced High-Speed Optical Signal Transmitter and Receiver for 5G wireless network (“Optical Modules”) using the photonics and semiconductor technologies for the latter’s global customers.
The intention is for CIG to transfer its 5G photonics modular technology to SMT Technologies Sdn. Bhd., being its first-ever pioneer technology transfer to South East Asia.
EG Industries’ first involvement with CIG was in 2018, producing box-build or full-assembly of wireless and wired access routers and gateway products for the enterprise and residential markets. With the LOI today, EG Industries would add the 5G photonics modular products of transceivers into its portfolio, on top of expanding on the current and new range of wireless and wired access routers gateway products.
CIG is headquartered in United States with sales/marketing presence in the Silicon Valley, and major R&D centers in Shanghai, China. A leading Original Design/Equipment Manufacturer and Joint Development Manufacturer, CIG focuses on wired and wireless access products, carrier ethernet, home networking and optical modules, which are deployed globally by partners including American and international industry icons.
EG Industries would complement CIG’s manufacturing facilities in China, through its smart factory and smart systems set up in Sg Petani, Kedah. EG Industries also intends to serve the expanding requirements of CIG and other customers via the upcoming second smart factory in Batu Kawan, Penang.
Dato’ Alex Kang, Group CEO and Executive Director of EG Industries Berhad said, “EG Industries is excited to be growing from strength to strength together with a formidable and visionary global partner like CIG, and support its aggressive pursuit of vast opportunities in next-generation technologies.
The telecommunications products we produce will be crucial in serving both enterprise and residential markets across the globe, primarily America, Europe and Asia, hence placing us in the forefront of a strong growth trajectory moving forward.
As an Original Equipment Manufacturing partner to CIG, we at EG Industries recognise CIG’s manufacturing and R&D expertise, and are honoured to be the first EMS company producing the top-notch 5G photonics modular in South East Asia. We look forward to leverage on CIG’s expertise to increasingly enhance our capabilities as we gradually adopt Smart Manufacturing practices to attain greater heights.”
Industry statistics report the positive impact of COVID-19 on the 5G technology market, as the shift towards online platforms for work increased the demand for better network providers and faster internet speed. 5G technology covers the entire ecosystem of hardware, software and services that are critical for the implementation of 5G networks.
The global 5G technology market, which was valued at USD5.1 billion in 2020, is projected to grow by a strong 65.8% on compounded annual basis to reach USD797.8 billion by 2030.
Cliff Lin, Executive Vice President of Cambridge Industries Group said, “CIG has expanded by leaps and bounds in our journey to be an internationally-accepted leader in the design and manufacturing of high quality and state-of-the-art networking equipment, while remaining cost-competitive and delivering superior customer service.
Our recent acquisitions into next-generation technologies including transceiver product lines place us favourably in optical module design and manufacturing for products for data center applications, which are in higher demand than ever before.
Given our growth plans, it was apt for us to consider on-boarding the right manufacturing partner with the same mindset to support our future aspirations. Selecting EG Industries as our only manufacturing partner outside China thus far is testament to its forward-looking management, production expertise, growth plans and reliable delivery. We also have confidence in the skillsets of Malaysia’s workforce and overall competitive advantage in the long-term.”
