KESM Industries Berhad to inject more capital into semiconductor testing unit
KUALA LUMPUR: Investment holding firm, KESM Industries Berhad plans to inject more capital into its semiconductor devices testing unit, KESM Test (M) Sdn Bhd, once it completes the acquisition of the remaining stake it does not own in the latter.
KESM Industries currently holds a 65.38 per cent stake in KESM Test.
At its extraordinary general meeting (EGM) today, KESM Industries Berhad received shareholders’ approval to buy the remaining 34.62 per cent equity interest in KESM Test from Singapore’s Sunright Ltd for RM35 million cash.
“The acquisition is in line with the group’s strategy to grow the testing business, which requires a high capital investment,” KESM Industries Berhad chief executive officer, Samuel Lim Syn Soo told Bernama after the EGM here.
The current economic condition is conducive for such acquisition in the semiconductor industry, he said.
“This is the perfect timing for us to acquire the shares. The industry is set to grow further. I don’t foresee anything that is going to weaken the business,” said Lim.
KESM Industries Berhad is principally involved in specialised electronic manufacturing. Through KESM Test, the group provides semiconductor burn-in and testing of semiconductor integrated circuits and assembly of electronic components to the automotive industry, among others.
Hence, Lim believes that the acquisition will also allow the group to focus more in the automotive market amid the growing opportunities.
“The growth prospect of the car industry looks good,” he added.
He said the electronic contents in cars had increased with new devices and higher technology whereby new test equipments are required.
One of the changes in the car technology is the advanced driver assistance scheme, a system to help drivers in the driving process.
“This system is being incorporated into a chip, which gives the semiconductor industry a new growth prospect, an area in which we already have an expertise and gaining leadership position,” he said.
For the financial year ended July 31, 2014, the group had invested RM68 million in the burn-in and test equipment, supporting a wide range of devices such as sensors, microcontrollers and microprocessors for a diversified customer base. – Bernama
Source By: New Straits Times