KUALA LUMPUR (April 19): EG Industries Bhd has secured a second letter of intent (LOI) from US-based Cambridge Industries Group (CIG) to produce a new 1.6 terabit optical signal transmitter and receiver for a 5G wireless network at EG Industries’ new smart factory 4.0 in Penang.
In a statement on Friday, the electronic manufacturing services (EMS) provider said that the latest LOI will include the production of 800-gigabit (G) optical modules, complementing the previous 100G, 200G, and 400G models in the first LOI in 2022.
“The production will take place at EG Industries’ existing facilities in Sungai Petani, Kedah, and the newly built smart factory 4.0, which is scheduled to commence operations by the second half of 2024,” it said.
Additionally, CIG will transfer its technology and intellectual property (IP) to EG Industries, which is currently CIG’s exclusive manufacturer outside China.
Meanwhile, EG Industries on Friday appointed Eduspec Holdings Bhd to perform independent testing services for its semiconductor components.
EG Industries said that it has also signed an LOI with Eduspec to jointly explore plans to establish a training and development centre to nurture local talents and engineers, particularly in advanced 5G technology sectors.
The group said the strategic collaborations are expected to contribute positively to its capabilities to capture growth opportunities amid robust demand for photonics and AI modules in the coming years.
At the time of writing, shares in EG Industries were nine sen or 6.25% lower at RM1.35 on Friday, valuing the group at RM631.53 million.
Shares in Eduspec were also down one sen or 7.14% at 13 sen on Friday for a market capitalisation of RM152.69 million.