GEORGE TOWN: Coraza Integrated Technology Bhd
is poised to invest about RM50mil into its fifth manufacturing facility in Penang, in anticipation of an upswing in demand for semiconductor products next year.
Group managing director Lim Teik Hoe told StarBiz that the plant, with an 83,000 sq ft production floor space, will likely start operation in the fourth quarter of 2025.
“When the new plant is ready, the production floor space of the five facilities will total about 300,000 sq ft compared with 220,000 sq ft presently.
“We expect this 300,000 production floor space to be fully utilised when the new plant is ready,” said Lim, who is also the CEO.
Coraza is an engineering solutions provider that offers one-stop services from design and development to product delivery with core competencies in sheet metal fabrication, including frame and structures, precision machining and electromechanical assembly.
It also manufactures metal parts and components for wafer fabrication equipment manufacturers.
The group globally supplies original equipment manufacturers and electronic manufacturing services, mainly multinational corporations.
According to SEMI’s latest report, after registering a record US$96bil in sales last year, the wafer fab equipment segment, which includes wafer processing, fab facilities and mask and reticle equipment, is projected to increase by 2.8% to US$98bil in 2024.
It noted ongoing strong equipment spending in China and substantial investments in dynamic random access memory (DRAM) and high-bandwidth memory (HBM), driven by artificial intelligence computing, are set to drive the growth.
In 2025, the SEMI report said “The sales of the wafer fab equipment segment are projected to expand 14.7%, reaching US$113bil due to increased demand for advanced logic and memory applications.”
Meanwhile, Lim said the group is strategising its business development plans to capture a wider market product offering and to move up the value chain to drive further revenue growth.
“This includes actively broadening our market segments by expanding our presence in the aerospace, instrumentation, medical, and life sciences sectors as part of our initiative to mitigate sectoral risks.
“Our persistent efforts in acquiring new customers and extending services to existing ones have significantly contributed to notable progress in the new product introduction process across various industries,” he added.
Coraza’s improved capacities, capabilities and broader market segment initiatives are expected to contribute to its growth, positioning the group to capitalise on the next semiconductor upcycle.
“With these efforts, management expresses confidence in the group’s ability to deliver better results in the subsequent financial years.
“In operations, the group is proactively refining its manufacturing processes to enhance efficiency and effectiveness, implementing cost-control measures, and bolstering the quality system,” Lim pointed out.
