KUALA LUMPUR (July 5): Electronics manufacturing services provider EG Industries Bhd (KL:EG) has signed its third letter of intent (LOI) with Shanghai-based optical and broadband technology firm Cambridge Industries Group (CIG) to expand its manufacturing operations in Batu Kawan, Penang. This expansion complements EG Industries’ existing facility in Sungai Petani, Kedah.
In a statement, EG Industries said the partnership aims to enhance production capacity by adding high-speed surface mount technology (SMT) lines, expanding cleanroom facilities from 1K to 10K standards for optical modules, and increasing automation in testing and packaging at the Batu Kawan site.
"These initiatives support CIG’s innovation road map and reinforce its strategic partnership with EG Industries to meet the evolving needs of customers worldwide.
This LOI builds on previous agreements: In April 2024, EG Industries secured a second LOI to produce 1.6-terabit optical signal transmitters and receivers for 5G wireless networks, following the production of 100G, 200G, and 400G models under the first LOI in 2022.
EG Industries chief executive officer Datuk Alex Kang said the facility in Batu Kawan will play a pivotal role in supporting the production of next-generation technologies, including 5G and 5G Advanced (Release 18) for global markets.
“This expanded collaboration also reinforces regional supply chain resilience and enhances delivery efficiency across CIG’s global customer base.” he added.
EG Industries shares closed up one sen or 0.84% at RM1.20 on Friday, giving it a market capitalisation of RM1.12 billion. The stock has fallen 4% so far this year.