South Korea-based manufacturer Simmtech is set to accelerate the expansion of its production line in Penang with a second phase investment of US$50 million (U$1 = RM4.4250), expected to be completed by the first quarter of 2023.
The company is a producer of semiconductor packaging substrates and high-value printed circuit boards (PCBs).
The Malaysian Investment Development Authority (MIDA), InvestPenang, and Simmtech said in a joint statement that in the initial plan, the company had planned for a five-year second phase expansion at its local unit Sustio Sdn Bhd.
However, Simmtech said it decided to accelerate its expansion plan to 2023.
The expansion would double the high-density interconnect PCB production capacity while creating additional 400 job opportunities for Malaysians, as well as involving working with local companies to enhance their localisation programme to enhance the country’s semiconductor ecosystem, according to the statement.
Simmtech Southeast Asia Managing Director, Jeffery Chun said the expansion decision is a testimony of the management’s determination to invest in Malaysia, on top of the successful opening of its first factory in Batu Kawan, which is a rising global semiconductor hub.
Earlier this year, Simmtech had invested US$150 million to complete Sustio’s 7.28-hectare manufacturing site, which has already begun production.
Newly appointed International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Simmtech’s fast-tracked expansion of its subsidiary in Malaysia proved that Malaysia continues to be a preferred destination for high-value investments due to the industry’s strategic position in the global electrical and electronics value chain.
“This expansion project also supports the country’s New Investment Policy, whose aims include nurturing innovative, high impact and high-tech investments that help create more higher paying jobs, which is key to the country’s long-term socio-economic upliftment and sustainable growth,” he said in the same statement.