MMSV (0113) MMS VENTURES BHD Ventures to ship out semicon test equipment
GEORGE TOWN: Test equipment manufacturer MMS Ventures Bhd plans to ship out semiconductor test-equipment with a market value of RM50mil for the current financial year ending Dec 31,2021 as it rides on the higher sales of smartphones and automobiles globally.
Last year, the group exported about RM28mil worth of semiconductor test equipment.
According to group managing director TK Sia, the group is expecting a significant improvement in its profit margins this year compared with the previous year.
“We are now in talks with potential customers from the smartphone and automotive sectors. In fact, we hope some of these deals will be concluded in the second half of this year, ” he added. Sia told StarBiz that about 60% of the orders were generated from the smartphone segment.
“We have a US-based customer that is expected to place strong orders with us this year.
“The remaining 40% will come for our US and Europe-based customers which are involved in the automotive sector, ” he said.
Meanwhile, Sia expects the group’s performance in the first quarter FY2021 to improve significantly over the same corresponding period in 2020 and the immediate preceding quarters.
He pointed out that the global smartphone shipments are expected to grow by 5.5% in 2021. In the first quarter of this year, Sia said smartphone shipments are expected to grow 13.9%.
Global market intelligence firm, International Data Corp (IDC) had attributed the strong push in 5G and pent-up demand for this potential growth.
IDC estimated that 5G phones could account for 40% of the total smartphones volume this year.
“This year, smartphone shipments are forecasted to grow by 6% in China while in the US, about 3.5%, ” Sia said.
He also said the automotive sector would be another important growth driver for test equipment business in 2021.
“Research firm Trendforce expects vehicle sales to increase to 84 million units in 2021 from 77 million units in 2020. At the same time, the rising popularity of autonomous, connected, and electric vehicles is likely to lead to a massive consumption of various semiconductor components, ” he said.
Hence, about 60% of the group’s revenue is expected to be contributed by smartphone segment while the remaining 40% from the automotive segment, Sia pointed out.
MMS Ventures is involved in the manufacturing of test-equipment used in the assembly and packaging of smartphone and automotive sensors.
Globally, the assembly and packaging equipment segment is projected to grow 20% to US$3.5bil in 2020, followed by 8% and 5% increases in 2021 and 2022, respectively, driven by Advanced Packaging applications.
According to SEMI, the global sales of semiconductor manufacturing equipment by original equipment manufacturers are projected to register a new industry record of US$68.9bil in 2020.
“The growth is expected to continue with the global semiconductor manufacturing equipment market reaching US$71.9bil in 2021 and US$76.1bil in 2022.
“The semiconductor test equipment market is expected to rise 20% in 2020, reaching US$6bil, and continue to expand in 2021 and 2022 on demand for 5G and high-performance computing (HPC) applications. China, Taiwan and South Korea are projected to be the leading regions in spending, ” SEMI said.
SEMI connects more than 2,400 member companies and 1.3 million professionals worldwide to advance electronics design and manufacturing technology and business.
Its members are also responsible for the innovations in materials, design, equipment, software, devices, and services that enable more innovative, faster, more powerful, and more affordable electronic products.