PETALING JAYA: MQ Technology Bhd today signed a memorandum of understanding (MoU) with Taiwan Superconductor International Semiconductor Technology Corp Ltd (TSIST), whereby the latter will invest up to 30% equity as well as assist and provide technical know-how to MQTech to expand its semiconductor operation in Malaysia.
MQTech managing director Tong Sian Shyen said that given the current market demand, the collaboration with TSIST is timely for MQTech to extend its market reach in the semiconductor sector.
“TSIST will enable MQTech to leverage on technological transfer from Taiwanese experts, increase its exposure in the semiconductor industry and increase the turnover as well as shareholders’ wealth. Currently, the semiconductor market is a seller's market due to significant market demand worldwide, and the supply of related products in the international market is not sufficient to meet the demand,” Tong said.
Fuelled by new technology applications such as 5G, artificial intelligence (AI), cloud computing, and Internet of Things (IoT), as well as a surge in demand for consumer electronics, AI automotive and digital services during the Covid-19 pandemic, MQTech is seeing continued strong growth of the semiconductor industry both globally and locally. The overall outlook for the industry is positive, and the global market for semiconductors is projected to continue growing to reach US$1 trillion (RM4.46 trillion) over the next decade, which is more than double the size of the semiconductor market in 2021.
MQTech is listed on Bursa Malaysia in the semiconductor sector, and with operations in manufacturing of molds and tools, tooling, dies, jigs and fixtures and car spare parts. Its services include providing precision tooling or processes, automation, design and prototyping, and rapid tooling. It has a presence domestically and abroad, including Thailand and the United States.
TSIST CEO Professor Liu Chien-Lung said the company values the opportunity to participate in the equity interest in this semiconductor venture.
“MQTech and TSIST should collaborate and invest more in the lucrative semiconductor manufacturing facilities especially the higher margin segment. TSIST has all the technology know-how to enable technology transfer. Our key personnel are senior engineers and industry experts from giant semiconductors companies such as Taiwan Semiconductor Manufacturing Co Ltd and Huawei Technologies Co Ltd,” he said.
During the ceremony, Liu told reporters that due to the geopolitical tensions between Taiwan and China, he foresees many Taiwanese companies in the semiconductor industry coming to invest and expand in Asean countries. Currently, its main focus country is Malaysia and he cited MQTech as one of the well-established semiconductor companies.
The MoU, which was inked in a virtual ceremony, is for six months and both parties are expected to sign a definitive agreement within that period.
