Sustio’s RM326 Million Phase 2 Expansion Cements Penang’s Advanced Manufacturing Leadership

This post is also available in: 简体中文 (Chinese (Simplified)) Melayu (Malay)

Penang, Malaysia – April 30, 2025 – The industrial landscape of Penang received another significant boost today with the official completion of Sustio Sdn. Bhd.’s Phase 2 expansion in Batu Kawan Industrial Park. Sustio, a key Malaysian subsidiary of the South Korea-based SIMMTECH Group, has invested RM326 million in this new facility, effectively doubling its manufacturing capacity for high-density interconnect (HDI) printed circuit boards (PCBs) and substrates crucial for the global semiconductor industry.

This expansion is a testament to Penang’s enduring appeal as a strategic hub for high-technology manufacturing and reinforces its moniker as the “Silicon Valley of the East.” For investors and stakeholders in the Penang industrial scene, this development signals robust growth and increasing sophistication within the region’s already strong Electrical and Electronics (E&E) ecosystem.

Key Highlights of Sustio’s Phase 2 Expansion

• Substantial Investment: RM326 million invested in the state-of-the-art second operations facility. This brings Sustio’s total investment in Penang to approximately RM750 million since its establishment in May 2022.
• Enhanced Capacity: The expansion doubles Sustio’s HDI manufacturing capacity, positioning the company to meet the burgeoning global demand driven by advancements in artificial intelligence (AI), advanced computing, and next-generation smart devices.
• Job Creation: The new facility has generated 1,400 high-value jobs, contributing significantly to local employment and talent development in advanced manufacturing.
• Strengthening Supply Chains: This development further solidifies Malaysia’s critical role in the global semiconductor supply chain, particularly in producing vital components for the E&E sector.

Insights from Key Leaders

The significance of this expansion was underscored by prominent figures at the inauguration event:

• YAB Mr. Chow Kon Yeow, Chief Minister of Penang, highlighted the long-term vision for the region, stating, “The SIMMTECH Group’s long-term commitment—evidenced by plans for Sustio Building 3 and an additional 10-acre site for Building 4—signals a bright future for Batu Kawan as a site for advanced electronics manufacturing… As Penang continues to strengthen its position as the ‘Silicon Valley of the East,’ the State Government remains committed to enhancing infrastructure that supports and complements investor needs.”
• Mr. Jeffery Chun, CEO of SIMMTECH Co. Ltd., expressed his confidence in the local landscape: “Our investments in Malaysia reflect our confidence in the country’s talent, infrastructure, and strategic position in the semiconductor industry… With Sustio’s cutting-edge capabilities, we are not only supporting global technology demands but also empowering local economic development.”
• Mrs. Zalina Zainol, Deputy Chief Executive Officer (Investment Development) of the Malaysian Investment Development Authority (MIDA), remarked on the strategic alignment, “Sustio’s bold expansion reflects exactly the kind of forward-thinking ambition we are proud to support in Malaysia. By aligning its strategies with next-generation technologies, especially AI-driven innovations, Sustio is not just growing its business; it is helping to energise and elevate our entire semiconductor ecosystem… MIDA stands ready to support Sustio — not just today, but every step of the way, as we build a brighter, more innovative future together.”

Implications for Penang’s Industrial Future

Sustio’s continued expansion in Batu Kawan is a clear indicator of the region’s attractiveness for high-tech investments. It not only enhances Penang’s manufacturing capabilities but also stimulates the growth of local supporting industries and talent. The company’s plans for further expansion with Buildings 3 and 4 point towards a sustained growth trajectory, promising more opportunities and solidifying Batu Kawan’s reputation as a premier destination for advanced electronics manufacturing.

For investors looking into Penang’s industrial sector, Sustio’s success story underscores the robust infrastructure, skilled workforce, and supportive government policies that make this region a compelling choice for investment in the E&E and semiconductor industries.

This development further energizes the industrial property market in Penang, particularly in areas like Batu Kawan, which are primed for continued growth in the high-technology manufacturing sector.