Friday 21 Jun 2024
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KUALA LUMPUR (Oct 26): EG Industries (EG) secured a letter of intent (LOI) with US-based Cambridge Industries Group (CIG) to produce advanced high speed optical signal transmitter and receiver for 5G wireless network (optical modules), it said in a press statement on Wednesday (Oct 26).

According to the group, the intention of the LOI is for CIG to transfer its 5G photonics modular technology to EG Industries’ wholly-owned subsidiary SMT Technologies Sdn Bhd, which will mark its first-ever pioneer technology transfer to Southeast Asia.

“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,” said EG’s group CEO and executive director Datuk Alex Kang.

“We look forward to leveraging CIG’s expertise to increasingly enhance our capabilities, as we gradually adopt smart manufacturing practices to attain greater heights.”

The LOI allows EG to add 5G photonics modular products of transceivers in its portfolio.

According to EG Industries, CIG’s next-generation technologies will position the group favourably in the optical module design and manufacturing of products for data centre applications.

CIG’s executive vice president Cliff Lin Chin Hung added that the right manufacturing partner is crucial for CIG’s growth plans.

“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.”

Through the LOI, EG was able to complement CIG’s manufacturing facilities in China through EG’s own smart factory and smart systems in Sg Petani, Kedah, and its upcoming factory in Batu Kawan, Penang.

“We also have confidence in the skillsets of Malaysia’s workforce and overall competitive advantage in the long-term,” said Lin.

EG’s involvement with CIG began in 2018 by producing box-build or full-assembly wireless and wired access routers and gateway products for CIG and residential markets.

At the time of writing, EG Industries Bhd’s share price had declined to 1.5 sen or 3% at 48 sen, bringing its market capitalisation to RM204.96 million.

Edited ByLam Jian Wyn
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