silterra sets sights on automotive industry
Malaysia SilTerra Sdn Bhd specializing in the production of integrated circuit semiconductor chips (IC)
In the booming automotive industry, design companies are eyeing huge opportunities.
Firdaus Abdullah, chief executive and executive director, said profit margins and business life in the global auto market were good.
\"For years, we have been a consumer electronics manufacturer specializing in the production of cell phone chips.
It\'s a great cause because it\'s a high
\"Volume 1, but there is also a lot of profit pressure and life doesn\'t exist,\" he told StarBiz . \".
In the telecom industry, Firdaus said the company needs to develop new chips on a regular basis.
\"The turnover rate is high, about every six to twelve months.
So we decided that we need to move into a lucrative, longer-lived area where we can play a role in the next 10 to 15 years.
\"Having profit margins and longevity is a good commercial significance for entering the market.
Last year, we were certified to produce chips for the automotive industry and we expect good growth in this area and hope to be a strong player in this area in the coming years.
Firdaus noted that Malaysia is the world\'s seventh-largest exporter of electronic products, even surpassing Japan.
\"A large part of our electronics exports are aimed at the automotive electronics market.
Malaysia is the only country in 600. million-
Population in the South
East Asia with complete electrical and electronic products (E&E)
Supply chain of automobile market.
\"We believe in electric cars (EV)
Segment is Malaysia\'s unique opportunity to gain leadership in the current global automotive and electronics markets by integrating our strengths and capabilities in the global automotive electronics supply chain, and our experience and determination in the automotive market.
Firdaus added that the automotive electronics sector is currently the fastest growing segment in the global semiconductor industry, growing more than 15% annually.
\"To 2050, more than 85% of new cars will be electric vehicles or hybrid vehicles with varying degrees of self-driving capability, and electronic systems will account for more than 50% of the total cost of manufacturing cars.
\"This is good news for Malaysia as we are already the world\'s leading E & E exporter and automotive electronics are an important part of our E & E exports.
\"On the local side, Malaysian industry has been in contact with SilTerra --
Government High-Tech Group (Might)
Participate in the third national automobile project.
Firdaus said the project was still in its preliminary stages and he could not elaborate on it.
Recently, the company received attention when the issue of funding for the project arose.
Last October at that time
Dr. Datuk Seri Wee Ka Siong, vice president of MCA, asked about SilTerra\'s sources of investment funding related to the third national automotive project.
Firdaus clarified that SilTerra is only involved in the supply of chips, not the development of the entire car.
\"We did not fund it.
We are funding our capital expenditures. capex)
New equipment for the electricity market, some of which will be used for cars.
Might is working with several political parties (
About funds),” he said.
In terms of capital expenditures, Firdaus said SilTerra would invest $20 in new technologies it has developed this year. This is a mark-
Capital expenditure rose from $2018 to $.
\"Now that the technology we are developing is basically ready, we need to further increase our capital expenditure.
But benefits can only be seen in 2020.
\"This is because it takes six months to arrive when you order the equipment, and another three months to qualify.
It\'s been almost a year. ”A loss-
In the past few years, there has been a turnaround in SilTerra\'s wealth.
\"We have been making profits for the past three years.
Our average profit is 60 Myr and our income is about 30 Myr.
Interest, taxes, depreciation, and earnings before Amortization exceeded yuan.
\"SilTerra operates at the plant in kidakulin, which is able to produce 40,000 wafers per month and employs about 1,300 people-most of them Malaysians.
The company does plan to expand its current facilities, Firdaus said.
\"We have about 75 acres of land in Kulin, half of which are used by our factories.
If we don\'t use it (the land)
The country will take it back.
Nearly 100% of SilTerra\'s revenue comes from overseas businesses.
\"Our customers are from China (40%), Taiwan (30%), the US (10%)
South Korea, Europe and even Brazil . \"
\"In the past, America was a big contributor, but we did see it grow over time.
In November, SilTerra was Beijing Yandong Micro-Electronics Co. , Ltd. , China\'s leading micro-electronics producer (YDME)
Set up an 8-
Inch wafer fabrication plant worth rm2. 9bil in Beijing
The plant will cover an area of 73,260 square meters and is expected to be put into production in the first quarter of this year.
It is estimated that 50,000 wafers can be produced per month.
What Firdaus said is
Working with YDME will help open the door for other Chinese projects.
\"YDME is very powerful in the power industry.
\"It has been discussed to establish an electric power joint venture in Malaysia and China,\" he said . \" SilTerra has also been negotiating to set up factories in other countries, he added.
\"We also have interests from India, Vietnam and Turkey,\" Firdaus said . \".