Malaysia Microelectronic sees growth [New Straits Time (Malaysia)]
(New Straits Time (Malaysia) Via Acquire Media NewsEdge) KUALA LUMPUR: Malaysia Microelectronic Solutions Sdn Bhd has returned to profitability and is eyeing the European and South American markets for growth.
Established in 2000, Malaysia Microelectronic is Malaysia's first semiconductor company that posted RM47 million in losses before a new management took over from Mimos Bhd three years ago.
Malaysia Microelectronic is also the only Bumiputera-owned smartchip maker and one of five global smartchip certified suppliers for Visa and Mastercard.
Its chief executive officer Shafiq Akmal Ismail said the company is working with a Brazilian company to roll out the country's first identification card this year.
"In Europe, we are working with Sagem in Belgium to supply smartchips with total orders of four million units.
"As far as growth is concerned, the firm is in a good position as a big majority of the world's credit, identification and other card users still use the magnetic strips," Shafiq said in an interview, here, recently.
He said with the exception of Malaysia, which has 100 per cent migrated to smartchips, most of the global card users still use magnetic strips. This has led to fraud cases with millions of dollars in losses.
"In the United States, almost half of the cards still use the magnetic strip. In Malaysia, insurance and medical cards are still without the smartchips. So there is potential for the firm," said Shafiq.
He said Malaysia Microelectronic will be launching the 0.18 micron smartchip in March with development, intellectual property, hardware and operating systems 100 per cent owned by the company and its Bumiputera engineers.
Shafiq said it isn't targeting big markets like the US as it does not want to compete with giants like Infineon and Chinese integrated circuit companies.
Malaysia Microelectronic, which has been in the black since it took over from Mimos, exports to 17 countries through commissioned factories and manufacturing partners in Taiwan and in Kulim, Kedah.
It derives 97 per cent of its revenue from foreign markets with a distribution of 70 million chips.
An IS9001:2008 and a Multimedia Super Corridor-status firm, the firm developed the 1Malaysia smartchip for MyKad.
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