KUALA LUMPUR (Aug 1): UMS Integration Ltd (KL:UMSINT), listed on the Main Market of Bursa Malaysia on Friday, expects demand for its products and services to remain strong and would withstand US tariffs.
Most of its products are delivered to key customers in Malaysia and Singapore, while clients have agreed to absorb the extra cost when their goods have to be shipped to the US, said Stanley Loh Meng Chong, an executive director at the high-precision engineering firm.
“If there are any tariffs, our customers will absorb it because these are all customised products for their operations,” Loh told reporters following UMS Integration’s listing ceremony.
Singapore-listed UMS Integration, which made Bursa Malaysia its second home, operates two core business segments, high-precision component manufacturing, and integrated systems assembly. Bulk of its manufacturing operations are located in Penang and Singapore.
UMS Integration has a newly acquired 21,760 square-metre land in Penang for a planned expansion, and it also has a small 692 square-metre facility in the US. The company supplies critical parts used in front-end semiconductor tools and assembles complex modules in cleanroom environments.
Demand for its services is expected to remain strong with rising investments into equipment, to produce more chips catering to artificial intelligence (AI), said Loh.
“This will drive demand for semiconductor equipment, which, with UMS being a contract manufacturer, we will benefit from that trend,” he added.
Nearly 85% of its revenue comes from the semiconductor sector. Services provided to aerospace clients contributed about 11% to its topline, with the rest from other sectors.
Key clients include two Nasdaq-listed global leaders in wafer fabrication equipment, which together control about 60% to 80% share of the global deposition tools market — a vital category in semiconductor fabrication.
Read also:
Dual-listed UMS Integration emerges as top gainer on Bursa debut
UMS Integration to debut at RM5 on Bursa as first SGX secondary listing
SGX-listed UMS’ Bursa debut deepens exposure to high-growth semiconductor sector
Bursa Malaysia set to welcome UMS Integration, first ever dual listing by SGX-listed firm