TTM opens Penang PCB plant and targets earlier expansion
TTM opens its first Malaysian PCB plant in Penang and considers starting a second expansion phase in 2024, with production and hiring targets extending to 2025.
Penang opening and expansion plans
TTM Technologies opened its first factory in Malaysia on 25 April 2024. TTM allocated US$200 million, approximately RM958 million, to the 10.9-hectare site in Penang Science Park. Penang Chief Minister Chow Kon Yeow officiated.
President and chief executive Thomas Edman was considering Phase 2 by end-2024 rather than 2025. The planned capacity increase was 25%. TTM targeted around 1,000 jobs and approximately RM855 million full run-rate revenue by 2025, according to Bernama’s opening coverage.
The original manufacturing commitment
TTM announced the Penang project on 1 March 2022, targeting customers seeking advanced multilayer printed circuit boards outside China. Several customers had already made long-term commitments. TTM initially budgeted US$130 million over 2022–2025, planning construction in 2022 and equipment installation in 2023.
The original schedule envisaged pilot production in the second half of 2023, volume production during 2024 and a gradual ramp to Phase 1 capacity representing about US$180 million in annual revenue in 2025. The planned factory could accommodate a 25% Phase 2 expansion. TTM identified these dates and amounts as expectations subject to risks and uncertainties.
Production processes and customer sampling
By 7 February 2024, the Penang factory had all its major processes running and was supplying product samples to customers, according to Edman. The operational update accompanied TTM’s results for its 2023 financial year, which ended on 1 January 2024. Customer sampling was underway before the April opening ceremony.
TTM’s group sales fell 11% to approximately US$2.2 billion in 2023, from approximately US$2.5 billion in 2022. The group recorded a GAAP net loss of US$18.7 million, compared with net income of US$94.6 million a year earlier. These financial results covered the manufacturing group as a whole.
Products and commercial customers
The Penang factory targets commercial applications in networking, data centre computing, medical equipment, industrial systems and instrumentation. Edman expected Phase 2 investment to be lower than Phase 1 because the existing facility was equipped to accommodate the expansion.
- Quick-turn and volume production of advanced printed circuit boards.
- Backplane assemblies and electromechanical solutions.
- Radio-frequency and microwave components and assemblies.
TTM generated US$187.3 million in operating cash flow during 2023 and returned US$24.4 million of capital to shareholders. The company refinanced its term loan and asset-based lending facility, leaving no maturities until 2028. Management attributed part of the year’s operating performance to a better product mix and execution in North America and Asia Pacific.
Leave a comment