Set up last year, the company will produce electronic parts and supply them directly to hard disk and semiconductor manufacturers in Thailand to help them save the cost of imported products. It will also reduce delivery time.

Chaovalit Charoenpanperm, president of Digi Cron, said manufacturers now import electronics parts from abroad, mostly from Korea, Japan, Taiwan and Singapore. Having parts produced locally saves on cost so the company has worked with Korean technology partner Micron Precision to establish a local manufacturing base for electronic parts.

The products include IC moldings, lead frames and high-precision parts used to produce semiconductors, hard disk drives and hi-tech electronic appliances.

The company has invested Bt450 million to establish a 5,000-square-metre  electronic-parts plant in Ayutthaya, which will employ around 200 Thai engineers.

"The move will fill the gap for local companies in the field and help manufacturers in Thailand to shorten processing and lead times while lowering transport and production costs," said Chaovalit.

Thailand is a major world hard disk drive production base, with five large HDD manufacturers.

It's estimated that hard disk drive products produced in Thailand account for 42 per cent of the world's total value, surely a potential market for Digi Cron.

The plant will accommodate two kinds of production - stamping and tooling. As per plan, it will start the stamping production line this month and will start the tooling production line by the end of 2007.

The plant expects to generate revenue amounting to Bt300 million to Bt400 million this year.

 The revenue may increase to Bt10 billion by next year, when it starts its tooling production line.

The factory will use Micron Precision's production technology, capable of meeting high standards, as Micron Precision is the world's most well recognised manufacturer of IC molding. Micron Precision's IC moldings are used in the production of semiconductors, hard disk drives, mobile phones and other electronic appliances.

Micron Precision's Korean engineers will oversee the company's local production and will train Thai engineering teams. In addition, it will also send Thai engineers to further their skills at its plant in Korea.

"The combination of Korean expertise and innovative technology will serve Thailand's upcoming high technology industry," said Chaovalit.

Apart from technology and experience transferred from Micron Precision, the Thai facility will also be able to export products to Korea with the maximum portion of 80 per cent of total production capacity.

The firm plans to increase registered capital from Bt100 million to Bt200 million by the end of the year, expecting to break even in six years. It has received an eight-year  support package from the Board of Investment.

Asina Pornwasin

The Nation