KUALA LUMPUR: Cape EMS Bhd has signed a memorandum of agreement (MoA) with Taiwan's FIC Global Inc unit Pro3C (Malaysia) Sdn Bhd to support the latter's expansion in Johor's artificial intelligence (AI) manufacturing supply chain.
The agreement, signed on Oct 16, positions Cape EMS as Pro3C's local strategic partner, providing manufacturing infrastructure, supply chain management, facilities and operational support.
The collaboration supports Cape's CEB 2.0 transformation, aimed at improving facility utilisation, generating recurring revenue and shifting its electronics manufacturing services (EMS) business towards higher-value manufacturing.
Pro3C's manufacturing facility at i-Park @ Senai Airport City, which was opened on Oct 15, represents a first-phase investment of about US$50 million.
The plant manufactures components for 800G, 1.6T and 3.2T high-speed optical transceivers used in AI infrastructure, high-performance computing and data centres.
Pro3C currently operates eight surface-mount technology production lines with about 530 employees.
It plans to increase capacity by 125 per cent to 18 lines by 2027, with potential expansion of its manufacturing floor space by up to four times.
FIC Global is targeting revenue of up to US$2 billion from its Johor operations in 2027, subject to customer demand.
Cape EMS group managing director and chief executive officer Christina Tee said the collaboration presented an opportunity to revitalise its EMS business and strengthen its position in advanced electronics manufacturing.
The MoA also provides for a potential subscription by Pro3C or its nominee for redeemable convertible preference shares in Cape EMS, subject to separate commercial terms and regulatory and shareholder approvals.
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