Korea establishes large-scale Factory in Malaysia

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Korean Company Simmtech
Korean Company Simmtech

Penang, 1 January 2022 (TDI): A South Korean-based global leading renowned company for packaging substrate for semiconductors and manufacturing of printed circuit board (PCB), is currently constructing its first large-scale factory in South-East Asia at Batu Kawan Industrial Park in Penang, Malaysia.

Malaysian Investment Development Authority (MIDA) stated that the construction of the facility is on schedule to be completed in the first quarter of 2022 (1Q22) despite the obstructions of the COVID – 19 pandemic.

The project will be funded by the Malaysian corporation namely Sustio Sdn Bhd, with a total investment of RM508 million, providing opportunities for local businesses to integrate with the global value chain.

The factory will produce the region’s first packaging substrates for dynamic random-access memory/NAND memory chips as well as high-density interconnect PCB for memory module/solid-state drive devices, with operations set to begin in the second quarter of 2Q22. By keeping the supply constrictions in view, it is crucial for the Penang project to manage the full swing supply chain.


Narrative of MD Simmtech

Managing Director of Simmtech South East Asia Jeffery Chun said that their greenfield project is chartering with the speed of light to instigate the capacity of their major customers in the region. This is possible due to the cumulative support of federal government agencies especially MIDA and the other state government agencies.

By the first half of 2022, the new Penang factory is expected to create more than 1,000 high-skilled jobs in engineering, production, and quality management.

Malaysia, serving as an important link in driving the global semiconductor value chain, its sturdy habitat is a hub of advanced manufacturing which will be more strengthened through the new substrate and PCB factory.

According to MIDA

According to MIDA, the worldwide scarce supply of chips consistently surged the demand for high-performance computing and memory products which engendered customers to design co-development programs with Simmtech to acquire the products from the newly certified facility which helped Simmtech to replicate its mass production in the shortest time frame successfully.

Penang factory is already a manufacturing plant of the first packaging substrates in the region which will position Simmtech as a differentiator against its competitors.