PENANG – Simmtech said it would invest US$120 million to set up a 72,000 sq. m. printed circuit substrate manufacturing plant in Penang, according to reports.

Construction is expected to be completed by early in 2022, with operations and shipments expected to start within the first half of next year. The company does not expect delays due to Covid-19.

The site is expected to create 1,200 jobs.

“It makes a lot of sense for us to choose a region with a strong E&E background, as well as access to local businesses and resources,” said Jeffery Chun, Southeast Asia managing director, SimmTech. “This is our first phase of investments. Most of them will be made during the construction project over the next two years.

“Instead, we see this pandemic as an opportunity for the industry, as the increasing trend of online meetings created stronger demand for semiconductor products. This is a great period for the semiconductor industry as a whole.

“Once it is in full swing, the production capacity in Penang will represent 20% of Simmtech Group’s current combined capacity in South Korea, China and Japan.”