Chipmaker Frencken to build new $63 million plant in Kaki Bukit
The new facility will 'lay a stronger foundation' for the mainboard-listed company to continue to expand its mechatronics business in Singapore. PHOTO: BT FILE
SINGAPORE - Singapore-listed semiconductor maker Frencken will invest $63 million to build a new and larger five-storey manufacturing facility in Kaki Bukit.
The new site will be built on a plot of land leased from Jurong Town Corporation (JTC) to its subsidiary ETLA for a period of 33 years, from Aug 18, 2025, the group said in a bourse filing on June 3.
The new facility will 'lay a stronger foundation' for the mainboard-listed company to continue to expand its mechatronics business in Singapore.
The new facility will expand its production resources to support existing and new programmes, as well as strengthen its position with key customers in the coming years, it added.
In particular, the new plant will have larger clean rooms, allowing the group to scale up its business with key wafer fabrication equipment customers.
'The group believes Singapore will remain a vital and strategic base for its manufacturing operations and future growth,' said Frencken in the statement.
'The new facility will continue to ensure the group's proximity to its semiconductor customers in Singapore.'
Once it is completed, Frencken plans to progressively relocate and consolidate its manufacturing operations in Singapore, which are currently in separate facilities in Changi North and Seletar Aerospace Link.
Frencken will fund the construction and fit-out work of the new plant through internally-generated resources and borrowings.
As part of the lease agreement with JTC, ETLA has to invest at least $19.5 million, of which $13.3 million must be spent on new plant and machinery. This investment must be fulfilled within three years of the commencement date.
The remaining amount can consist of the net book value of ETLA's existing plant and machinery that will be relocated to the new site.
The Kaki Bukit plot has a land area of 12,318 square metres (sq m), and is expected to be developed to a gross plot ratio of not less than 2.19 but not exceeding 2.5.
The facility is estimated to yield a gross floor area of 28,594 sq m, subject to the final design and development plans.
Construction will begin in the third quarter of 2025, and is expected to be completed by the first quarter of 2027.
Shares of Frencken closed flat at $1.14 on May 3 before the announcement. THE BUSINESS TIMES
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