Chinese company fund RM1.5b in Malaysia to establish 5G chips

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Zodiac (China) Advanced Science and Technology Development Center Ltd is looking at a potential expenditure of as much as RM1.5 billion as part of a broader initiative to set up a production base for producing 5 G chips and encapsulation technologies in Malaysia. Zodiac, a high-tech corporation with high-frequency integrated circuit (IC) manufacturing experience, packaging and processing capability, and satellite transmission network architecture and development technologies, is planning to develop a second production plant on a 202.34-hectare (ha) parcel in Malaysia.

“The Group’s satellite chips are one of the biggest revenues in the world and have also been at the forefront of the electronics industry. In response to the current foreign scenario and business needs, the Company has agreed to set up its second manufacturing base in Malaysia to grow 5 G chips and encapsulation, “said Zodiac Company Chairman Datuk Chu Boon Tiong.

“The first phase of the production plant would be built on a plot of land of 500 acres (202.34 hectares) with an estimated expenditure of RM1.5 billion,” he added. Zodiac ‘s latest organizational structural structure and turnaround program or new growth approach derives from the need to reduce the risks of rising China-US conflicts and the Covid-19 pandemic. Its first building, situated in Quanzhou, Fujian, China, has been operating since 2018.

This endorsement of Malaysia as an investment destination depends on the favorable climate, well-developed infrastructure and sound financial system, coupled with Malaysia’s strategic position, which should help Zodiac create an excellent global industrial chain link. In addition to the above, Zodiac has also managed to lock in the patronage of the local government the place where the project should be produced, which facilitates the sale of finished goods and gives preferential treatment status.

The Group estimates its potential output ability to surpass a total of US$ 20 billion (about RM84 billion) on the basis of the above-mentioned catalysts, he said. The decision to invest in Malaysia was taken in the immediate future, taking into account the global appetite for Zodiac goods and recognizing how the Group ‘s success in the foreign investment sector can be strengthened. This expenditure is also projected to see major gains in the fields of quality management, quality of output and total performance.

In tandem with its decision to invest in Malaysia, the Company has also made a breakthrough in the 5 G constraint of fifth generation mobile communications and has pushed towards the production of sixth generation technologies. To this end , the Company will spend roughly US$ 600 million (RM2.5 billion) in the immediate future to improve the sixth generation communication network, which will serve as a stimulus for the second step of 6 G innovation and production, sowing new seeds for the future of the Business.

Zodiac has received both financial and technical support from Hong Kong Blue Mountain Group and Hong Kong Headway Technology Holdings Co., Ltd for the development of its 6G technology. Meanwhile, the Group has also tied up with public relations and strategy company Opustique Infinity Co. Ltd for the latter to provide the requisite support and advice for the Group.

Speaking about its 6 G growth, Chu said: “The Company and its subsidiaries have decades of rich and unique experience in high-end chip production technology. The Group’s new high-end chip manufacturing technologies and technologies encapsulation of the fifth generation have broken through the constraints of 5 G and moved to 6 G production.

“The Company will begin to set up a new strategy, task and value structure that will improve the Group’s in-depth discovery and production of high-end chips,” he said.
To place things in context, the launch of the Group’s 6 G technology is a major achievement with the continued advancement of high-end infrastructure and a technological innovation in the modern century. – Adapted from Daily Express

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