Flexible PCB manufacturer Ichia (2402.TW) is investing $100 million (approximately CNY 710 million) in a new production facility in Malaysia to meet client demands for non-China-based manufacturing capacity. Construction of the new factory began earlier this year and is expected to be completed by the third quarter of 2025, with mass production slated for the fourth quarter. The new facility will focus on the optical communication, smart cockpit, and energy storage system (BMS) markets.

Currently, Ichia's production bases include Linkou in Taiwan, Suzhou, Zhongshan in Guangdong, and Malaysia. The company also has sales offices in Vietnam and Hungary.

According to Ichia's plan, the Linkou site will serve as the R&D center, while the new plant in Kedah, Malaysia, is expected to be completed by the third quarter of 2025. The plant will produce PCBs, PCBAs, and mechanical components, with full-scale mass production targeted for Q4 2025. The facility will house two factories, and once fully operational, it could generate NT$4-5 billion (approximately $125 to $160 million) in revenue within five years.

Ichia noted that the new plant in Malaysia will primarily serve the optical communication market, with a focus on optical communication module assembly. While optical communication is not a new business for Ichia (as it is already produced at their Suzhou facility), the shift to Malaysia is driven by customer demand for non-China production.