DNeX's unit SilTerra to invest RN645mil on capacity expansion

DNeX's unit SilTerra to invest RN645mil on capacity expansion

DNeX said the investment, sourced from both capital injections by shareholders and internally generated fund, would increase SilTerra’s annual capacity from 8.3 million mask layers as at end of July 2021 to 10 million mask layers.

KUALA LUMPUR: Dagang NeXchange Bhd's subsidiary SilTerra Malaysia Sdn Bhd is investing RM645 million on an expansion plan that will increase its annual capacity by 20 per cent.

DNeX said the investment, sourced from both capital injections by shareholders and internally generated fund, would increase SilTerra's annual capacity from 8.3 million mask layers as at end of July 2021 to 10 million mask layers.

The additional capacity is expected to be ready for production by early 2023.

DNeX group managing director Tan Sri Syed Zainal Abidin Mohamed Tahir said the investment was the shareholders' on-going commitment to equip SilTerra with best-in-class manufacturing capabilities and expand the production capacity to achieve a better economy of scale, with lower manufacturing cost.

Syed Zainal, who is executive chairman of SilTerra, said the initiatives implemented thus far to transform SilTerra into a profitable and resilient technology company had yielded fruitful results.

"In the past six months, our debottlenecking and process improvements exercise have resulted in improved productivity and efficiency levels.

"As a result, SilTerra is now a profitable entity and is well-poised to grow further in view of the continuous strong demand for semiconductors and prevailing capacity constraints within the industry due to the high demand of electric vehicles, Internet-of-things (IoT), data centres and electronic commerce," he said in a statement today.

Syed Zainal said the demand was particularly relevant especially for the 200 millimetre (mm) specialty foundries where SilTerra is in.

"Hence, it is prudent for us to continue our long-term investment programmes for SilTerra to cater to the rising demand," he added.

SilTerra is a strategic investment of DNeX and Beijing Integrated Circuit Advanced Manufacturing and High-End Equity Investment Fund Centre.

https://www.nst.com.my/business/2022/01/765681/dnexs-unit-silterra-invest-rn645mil-capacity-expansion