Unisem ...Apr10

It is allocating between US$60 million (RM198.6 million) and US$70 million as capital expenditure (capex) for its current fiscal year to expand capacity and capitalise on rising demand for electrical and electronic (E&E) components and products.

About 75% of the capex would go to expanding production capacity at its manufacturing site in Chengdu, China by building more factories. The remaining 25% will be used to augment the assembly and test capacity at its factories in Ipoh, Malaysia, and Batam, Indonesia.

It will embark on organic growth in 2010 to 2012.

The group’s two factories in China were running at full capacity, and expansion was needed to double the daily semiconductor output to 10 million pieces.

Unisem, which also has factories in the US and UK, has no immediate fund-raising plans.

Customers in Asia accounted for 98% of Unisem’s revenue of RM1.04 billion in FY09’s fourth quarter while the European and US markets contributed the balance, according to notes accompanying the company’s latest quarterly financials.