Printed circuit board maker Simmtech is planning to start operations of its new factory in Malaysia between May or June next year, TheElec has learned.
The factory will manufacture memory module PCBs __ which mounts multiple memory chips on a single board. Such PCBs are used in PC, server and solid-state drives.
Memory module PCBs currently account for up to 25% of Simmtech’s revenue.
The new factory in Malaysia is its third for memory module PCB __ it has factories in South Korea and China as well.
The one in Malaysia was built to react to customer Micron’s expansion of their factory in the Southeast Asian country.
The factory is smaller than its counterparts in South Korea and China but will likely be more cost-effective.
Simmtech competes with compatriot companies such as Korea Circuit and TLB, as well as Taiwan’s Unimicron and Tripod for orders for memory module PCBs from memory chips giants Samsung, SK Hynix and Micron.
However, the spread of the Omicron variant of COVID-19 is expected to cause uncertainty over how well Simmtech will be able to operate its factory in Malaysia.
The South Korean PCB maker is also expanding its facility at Cheongju, South Korea. The expansion is expected to be completed in January.
The factory manufactures high-end semiconductor boards such as flip-chip chip-scale package (FC-CSP) and silicon-in-package (SiP).