The semiconductor industry in Asia is growing rapidly. Signals indicating increasing demand for high-tech components in Malaysia and the wider region are prompting suppliers such as SMC to position themselves for what may lie ahead.
SMC Corporation has invested in strengthening its international presence
Silvester Engelen, electronics industry manager at SMC Netherlands, and TZ Ow, electronics industry manager at SMC Malaysia, explain how a global company organises such a strategic step without losing quality or expertise.
Positioning for growing demand
The signals from the market are hard to ignore: there are strong indications that demand for semiconductor components in Malaysia will increase considerably in the coming years. ‘We took the step early on to prepare our colleagues in Malaysia for such a development’, says Engelen. SMC Corporation had already made a strategic decision some time ago to distribute its expertise across the organisation worldwide at a high level.
‘We have long been taking into account the possibility that companies such as ASML will expand production in Asia’, Engelen says. The objective is clear: to distribute specialist knowledge globally at a high level, ensuring that SMC Corporation is prepared for what lies ahead. R&d remains anchored in the Netherlands, while the operational presence in Asia is being structurally strengthened.
Investing with short decision lines
A strategic step of this scale requires quite an investment. SMC Corporation has invested €20 million in Malaysia, focused on r&d and strengthening the local presence. According to Engelen, the investment decision was made relatively fast. ‘In Japanese corporate culture, decisions can be made quickly.’
‘In Malaysia, we must deliver exactly the same performance as we do in the Netherlands’
This resulted in a brand-new cleanroom in Penang, built according to the highest industry standards, one which is already operational. A second, larger cleanroom in Kuala Lumpur will be completed later this year. Together, the two locations provide a significant expansion of capacity.
TZ Ow, who has worked at SMC Corporation for sixteen years, understands the implications of those high standards. ‘The requirements in the semiconductor industry are extremely demanding. There’s no room for compromise.’ This requires precision, certified personnel and an uninterrupted chain of documentation.
Aligning knowledge levels worldwide
The greatest challenge in strengthening an international presence does not entail the machinery or the cleanroom. It is the expert knowledge. ‘The biggest risk is that we fail to transfer this knowledge sufficiently’, says Engelen. ‘In Malaysia, we must deliver exactly the same performance as we do in the Netherlands. We safeguard that in every possible way.’
That is only possible through physical presence and targeted training. The Malaysian team travelled to the Netherlands to learn about the collaboration with partners in the ecosystem. All specifications and guidelines relating to quality, logistics, technology, cost and sustainability were transferred through direct interaction.
‘Digital communication is not enough’, Engelen says. ‘Personal contact makes the difference.’ A visit by an ASML delegation to Malaysia was also arranged to see the new facility. The delegation returned deeply impressed, not only by the cleanroom itself, but also by the professionalism that was clearly visible in the collaboration between the teams.
Cultural strength as a foundation
SMC Corporation is a Japanese company whose European and Asian operations combine their strengths, and that combination is accompanied by cultural complexity. ‘It’s both an advantage and a challenge’, Engelen says. ‘Japanese culture differs significantly from European culture, and also from other Asian cultures.’
In Japan, business relationships revolve around deeply rooted trust and mutual respect. In Europe, competitive pressure is greater and relationships tend to be more transactional. TZ Ow recognises the difference but also sees the advantages. ‘Europeans are fast and direct in their approach. The Japanese work differently, with a high level of trust. We complement each other well.’ Within what both Ow and Engelen refer to as the SMC family, this diversity is seen as a strength.
The spider in the web
The internal organisation of major manufacturers in the semiconductor industry is complex, with large engineering teams. Navigating that organisation requires more than just a good product. It requires presence, knowledge and timing.
SMC Corporation sets itself apart as a specialist. Engelen: ‘We know everything about pneumatics and vacuum technology. We can show engineers that we know – in depth – what we are talking about. When you’re on speaking terms, as it were, we can help ensure that the most suitable product from the portfolio is selected, with characteristics and specifications that best match a specific application. That allows you to think along and help just a little bit more than when an engineer simply consults the catalogue.’ This knowledge position is a competitive advantage that can only be maintained through continuous investment.
Learning from cooperation
TZ Ow puts it concisely: ‘A challenge like this is an opportunity to learn. If you’re qualified for the highest standards in the industry, you can handle anything.’
The lesson is clear: successful global positioning is not about relocation. It is about organised cooperation between continents, built on standards, trust and people willing to go the extra mile. SMC Corporation’s goal is to be present worldwide with the same level of expertise, prepared for what may lie ahead.
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‘In Malaysia, we must deliver exactly the same performance as we do in the Netherlands’
fotobijschrift
SMC Technology Centre:
Front row from left to right: G. Ho (managing director VN), S. Hsieh (managing director TW), D. Wong (managing director SG), E. Haw (managing director MY), B. Vitorino (semiconductor manager US), L. Walker (key account manager US).
Back row from left to right: M. Hsieh (key account manager TW), E. Choo (semiconductor manager SG), TZ Ow (semiconductor manager MY), S. Engelen (semiconductor manager NL), W. Aerts (engineering manager NL), A. Molenbroek (key account manager NL), M. Vermaas (key account manager NL). Photo: ???
