{"id":41018,"date":"2019-04-09T09:47:35","date_gmt":"2019-04-09T01:47:35","guid":{"rendered":"https:\/\/investpenang.gov.my\/expanded-capacity-to-drive-growth\/"},"modified":"2025-12-02T17:25:43","modified_gmt":"2025-12-02T09:25:43","slug":"expanded-capacity-to-drive-growth","status":"publish","type":"post","link":"https:\/\/investpenang.gov.my\/zh-hans\/expanded-capacity-to-drive-growth\/","title":{"rendered":"Expanded capacity to drive growth"},"content":{"rendered":"

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” el_class=”sec-inner-banner” css=”.vc_custom_1703741584745{background-image: url(https:\/\/investpenang.gov.my\/wp-content\/uploads\/2023\/12\/contact-banner-bg.jpg?id=20253) !important;}” z_index=””][vc_column][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=”” el_class=”inner-banner-row”][vc_column_inner][vc_column_text]<\/p>\n

Expanded capacity to drive growth<\/h1>\n

[\/vc_column_text][vc_separator type=”normal” el_class=”red-separator” color=”#ee4023″ transparency=”1″ thickness=”2″ up=”15″ down=”15″][vc_column_text css=”” el_class=”white-text”]<\/p>\n

9 April 2019<\/p>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”grid” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1703764846254{background-color: #f3f5f8 !important;}” z_index=””][vc_column el_class=”fade-in animate”][vc_empty_space height=”120px” el_class=”height-x120″][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=””][vc_column_inner][vc_single_image image=”28822″ img_size=”full” qode_css_animation=”” el_class=”single-featured-image”][\/vc_column_inner][\/vc_row_inner][vc_empty_space height=”60px” el_class=”height-x60″][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=”” el_class=”content-row”][vc_column_inner][vc_column_text]LEAD-frame manufacturer Amlex Holdings Bhd is looking at realigning its revenue sources by expanding its business in the automotive lighting segment.<\/p>\n

Its upcoming move to a new facility would help it meet growing demand for its products this year, says managing director Lim Say Soon.<\/p>\n

\u201cWe want to have a balanced contribution from our two main business segments, which are the automotive lighting and sensor business. Currently, the automotive lighting segment generates sales of 30%, while the sensor business, 70%.<\/p>\n

\u201cThe goal is to even out the contribution from the two divisions in two to three years,\u201d says Lim.<\/p>\n

\u201cWe will be expanding the automotive lighting business once we are settled in the new plant, which we have invested about RM6mil in,\u201d he adds.<\/strong><\/p>\n

Amlex is moving to a new facility in Batu Kawan, Penang in June.\u00a0The new site will have a manufacturing floor space of 20,000sq ft.<\/p>\n

The company\u2019s headcount will also increase by 20% to 180 staff, comprising engineers, tool designers, and automation programmers.<\/p>\n

Amlex produces semiconductor packaging material such as lead-frames for LED modules and sensors used in smartphones and Internet-of-Things (IoT) products.<\/p>\n

Lim notes that the market in China is driving growth for innovative lighting solutions for automobiles and he hopes to tap into this growing market by leveraging its customers.<\/p>\n

\u201cAmlex sells lead-frames to multinational corporations in Malaysia which then sells them to automotive customers in China.\u201d<\/p>\n

It is a huge market in China, he says. The market value of LED lighting to be used for passenger cars in China is projected to hit US$1.9bil in 2022.<\/p>\n

According to Lim, the group will soon invest RM3.2mil on machinery to expand its production capacity.<\/p>\n

\u201cWithout an expanded capacity, we won\u2019t be able to tap into the automotive market in China nor increase our market penetration in the country, which is about 3% in the electronic packaging and interconnect solutions industry,\u201d he says.<\/p>\n

Amlex is also working on the miniaturisation of lead-frames used in smartphones and IoT products.<\/p>\n

\u201cWe are now designing the 0.004-inch lead-frames for the new generation of smartphones and IoT devices using more sensors, which also requires more lead frames.<\/strong><\/p>\n

\u201cWe have a RM4mil budget for our design and development activities,\u201d he adds.<\/p>\n

The company is also investing in insert moulding, which is a cost-saving production technology process. Insert moulding differs from injection moulding, says Lim, in that it is used to enhance the physical qualities of the housing.<\/p>\n

\u201cThe process is used mainly to manufacture housing for sensors requiring stronger protection,\u201d he explains.<\/p>\n

According to Lim, the smartphone market will also be one of the key drivers for the company\u2019s growth in 2019.<\/p>\n

\u201cAlthough the worldwide smartphone shipments are expected to decline by 3% in 2018 before returning to low single-digit growth in 2019 and through 2022, we are confident that our smartphone segment will grow because of the new models planned for release in the third quarter.<\/p>\n

\u201cIn 2018, all the big players have further built out their portfolios with bigger screens and higher-end smartphones, including Apple\u2019s new launch in September.<\/p>\n

\u201cIn the third quarter of 2018, the 6-inch to less than 7-inch screen size band became the most prominent band for the first time with more than four times year-over-year growth,\u201d Lim says.<\/p>\n

According to research firm IDC, the larger-screen smartphones (5.5 inches and above) will lead the charge with volumes of 947.1 million in 2018, accounting for 66.7% of all smartphones, up from 623.3 million units and 42.5% share in 2017.<\/p>\n

\u201cBy 2022, shipments of these larger-screen smartphones will move up to 1.38 billion units or 87.7% of overall shipment volume,\u201d the report says.<\/p>\n

\u201cThis trend will continue in 2019,\u201d Lim adds.<\/p>\n

Source:\u00a0The Star Online<\/a><\/p>\n

Photo Credit: The Star[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_empty_space height=”120px” el_class=”height-x120″][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

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