- Solectron Technology Sdn. Bhd. - Penang, Malaysia
Plot 13, Phase IV, Prai Industrial Park, 13600 Prai Penang,
- Kong Siew Mui, General Manager
James C. K. Chuen, Director, Business Development
Riwayat B. Mansor, Director, Quality and Engineering
Mohana Krishnan, Business Unit Director
Sundra Raj, Senior Engineering Manager
Mission and Strategy
- Solectron is a U.S. company established in 1977. It is the world's
third-largest contract manufacturer.
- Solectron has 8 facilities across three continents employing
approximately 13,000 employees. It achieved over $2 billion in revenue
- Solectron is a key supplier to major global customers such as IBM,
Sun Microsystems, Apple, Hewlett-Packard, SCI, Philips, Maxtor, and
- Solectron Penang was established in 1991 as a foreign subsidiary.
Solectron has a corporate culture to share the best production methods
among lines at each site and between sites. The Penang facility has 22
engineers devoted to process development and introduction of new
Key Elements of Presentation
- It has a total of 28 Fuji lines, 6 flex circuit lines, and one chip
on flex line in a class 10K cleanroom that place a total of 275 million
components per month.
- Solectron provides concurrent engineering and design services
including electronic information interchange direct with its customers
through the Internet.
- Solectron Penang has 5 different business units, including one
dedicated for Intel that consists of 12 SMT lines (segments). At the
current time, only 8 lines are being used. Its SMT lines are all
identical hard-coupled lines with a Fuji GSP-III screener, one Fuji
CP-6 chip placer, one Fuji CP-4 chip placer, a Fuji IP-II module
placer, and a BTU oven with nitrogen reflow.
- Solectron has 199,000 ft2 and 2,700 employees. It hires local labor
with 9th-11th grade education. It provides new workers with 1 month of
training, 2 weeks in classroom and 2 weeks under direct OJT
supervision. It runs 17 8-hr shifts per week (the same as 3 shifts for
5½ days per week). Shifts rotate weekly. Solectron can work its labor
force up to 4 hours overtime per day, so it has significant labor force
flexibility. It is experiencing 2% attrition/mo. for operators. It
provides good benefits and quarterly profit sharing.
- Solectron Penang participates in a corporate technology council
that manages the introduction of advanced process technology.
Key Elements of Tour
- The company was ISO 9002 qualified in 1993.
- The facility is 100% Malaysian managed.
- It is experiencing from 12 to 35 inventory turns, depending upon
- Penang was selected as the site to proliferate Solectron
manufacturing technology to future Asian sites.
- It has already established a program office in Japan that provides
access to Japanese technology roadmaps. Investigation has begun for
possible expansion into China.
- Solectron Milpitas has historically been the site to provide
advanced technology development to other Solectron sites for
implementation and deployment. Solectron Penang has begun to share in
the development of advanced process technology, especially for chip on
glass and chip on flex. The Milpitas facility is used for
cross-sectioning and process failure analysis at a corporate
Solectron Penang is establishing a manufacturing facility for active
matrix TFT color LCD. It is importing this technology with the
assistance of its customers. Some of the specific equipment has been
jointly designed by Solectron and its customers. Processes required to
support this technology include:
- Precision taping and heating of anisotropic contact film
- TAB-IC punching from reel
- Hot-bar / gang soldering of TAB onto PCB
- Solectron Penang has developed a unique program to encourage
sharing of creative ideas. The program is called the C.A.T. program and
encourages copying of ideas across the entire facility.
Published: May 1997; WTEC