(From second left) Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, Micron (Singapore and Malaysia) senior vice president Amarjit Singh Sandhu, Ambassador of the Republic of Korea to Malaysia Yeo Seung-Bae, SIMMTECH chairman Se-Ho Chun, Penang Chief Minister Chow Kon Yeow, Ambassador of Malaysia to the Republic of Korea Datuk Mohd Zamruni Khalid, Malaysian Investment Development Authority (MIDA) deputy CEO of investment development Zalina Zainol, SIMMTECH CEO Jeffery Chun, InvestPenang CEO Datuk Loo Lee Lian, and Korean Chamber of Commerce Malaysia (KOCHAM) chairman Datuk Roh Jae Yeol at Sustio Sdn Bhd second expansion phase’s ribbon cutting ceremony in Batu Kawan, Penang on Wednesday. (Photo by Sustio)

KUALA LUMPUR (April 30): Sustio Sdn Bhd, the Malaysian arm of South Korea’s Simmtech Group, is doubling its production of advanced, high-performance circuit boards with the completion of its RM326 million second expansion phase in Batu Kawan, Penang.

Advanced, high-performance circuit boards, otherwise known as high-density interconnection printed circuit boards (PCBs), are used in smartphones and data centres. 

Since starting in Batu Kawan, Sustio has invested RM750 million, including RM326 million for the second phase. These investments created 1,400 high-value jobs and strengthened Malaysia’s role in the semiconductor supply chain.

Simmtech Co Ltd chief executive officer Jeffery Chun said in a statement after attending the ribbon cutting ceremony in Penang on Wednesday, that the group is confident in Malaysia’s talent, infrastructure, and position in the global semiconductor industry. He added that Sustio not only supports global tech needs, but also boosts the local economy.

Sustio, launched in Penang in May 2022, makes PCBs and substrates for semiconductors. It’s part of Simmtech’s global network with plants in South Korea, China, and Japan.

The company is planning further growth focused on artificial intelligence (AI) applications. It is designing a third building and has bought land for a fourth.

Penang Chief Minister Chow Kon Yeow welcomed the expansion, calling it a sign of Batu Kawan’s growing role in advanced electronics manufacturing. 

“As Penang continues to strengthen its position as the ‘Silicon Valley of the East’, the state government remains committed to enhancing infrastructure that supports and complements investor needs,” he said.

Malaysian Investment Development Authority (Mida) deputy chief executive officer (investment development) Zalina Zainol praised Sustio’s efforts to align with next-generation technologies.

“By aligning its strategies with next-generation technologies, especially AI-driven innovations, Sustio is not just growing its business; it is helping to energise and elevate our entire semiconductor ecosystem,” she said.

Since its founding in 1987, Simmtech has led advancements in semiconductor packaging, including being the first in South Korea to supply key components for DRAM (Dynamic Random-Access Memory) and NAND flash. 

DRAM is temporary memory used when the device is on, while NAND flash is permanent storage that keeps data, even when the device is off.

Headquartered in Cheongju, it also runs manufacturing, and research and development (R&D) facilities in China, Japan, and Penang.