AEM Holdings has opened a new manufacturing plant in Penang. The new plant spans an area of 365,000 sq ft and will be used for assembly and quality assurance (QA). The new plant will also serve as a warehouse and a research and development (R&D) lab. In addition, it will be used for the development of advanced testing and handling equipment.
The opening comes after the group saw revenue more than double y-o-y to $746.6 million for the 9MFY2022, a record for the group.
In its statement, AEM noted that the new plant will help the group tap into the region’s growth opportunities and talents and bring its operations closer to existing and new customers.
According to the group, Penang, a hub in the semiconductor global supply chain, accounts for 80% of Malaysia’s contribution to the global backend semiconductor output. The state accounts for over 5% of the world’s semiconductor sales over the last few years.
The opening of the plant was officiated by Chow Kon Yeow, the chief minister of Penang; Lim Bee Vian, the deputy CEO, Investment Development of the Malaysian Investment Development Authority (MIDA); AEM’s CEO Chandran Nair, as well as AEM’s non-executive chairman, Loke Wai San.
“Experiencing an upward trend in its exports, Penang contributed an average 29% of Malaysia’s export, and 58% of the nation’s trade surplus over the past five years,” says Chow in his congratulatory speech. “In terms of investments, Penang is among the top contributors to the country, garnering RM9.2 billion ($2.79 billion) in approved manufacturing investments from January to September 2022. Particularly, investments from the machinery and equipment industry amounted to a total of RM7.3 billion from 2020 to September 2022, represented 57% of the country’s total.”
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He adds: “Riding on the prolific growth of advanced technologies, I am confident that Penang will be benefitting from the semiconductor industry’s long-term outlook. The state, via InvestPenang, is looking forward to working with AEM in accelerating the region’s vibrant electrical and electronics (E&E) ecosystem development, anchoring our status as the Silicon Valley of the East.”
“This project demonstrates not only AEM's confidence in Malaysia's long-term investment propositions but also the thriving state of the manufacturing industry and its ecosystem in Malaysia. The project is a parallel testament of the global investors' confidence in Malaysia as the preferred investment destination and the local companies' capability and readiness to support high-profile business ventures and activities,” says Lim.
“We’re pleased to announce the opening of our new plant in Penang. It allows us to scale up testing and handling capabilities to meet the growing demand for new semiconductor devices. We ensure our customers’ success by continuing to grow our capabilities to deploy quickly at scale. Together with our centre of excellence in Singapore, I believe we will solidify our position as a hub in the region,” says AEM’s Nair.
As at 12.58pm, shares in AEM are trading 6 cents lower or 1.72% down at $3.42.