Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 13 CHAIRMAN’S MESSAGE (CONT’D) The pandemic has accelerated the adoption and implementation of many technologies that would have taken years, if not decades, to become conventional. It changed the way people work and triggered a massive shift to the use of digital technology. Work from home, virtual conferences, remote learning, and online shopping have driven up the demand for all things electronic in a short span of time. These needs have also highlighted the importance of the semiconductor industry and integrated circuits in our daily lives as well as the global economy. It pushed forward the deployment of 5G infrastructure, artificial intelligence (“AI”), internet of things and cuttingedge electronics. Consequently, our dependance on a wide range of applications from household electronic goods, mobile devices to automotive also increased. The unwavering focus on fundamentals of our business and push for research and development (“R&D”) to new levels allow us to stay on top of our business. We continue to develop specialised process technology with our customers based on the input and specification that each of them require. As a result, we were able to provide our customers with the highest level of process customisation and differentiated solutions to meet their individual needs. Our continuous R&D allow us to provide solutions that help our customers improve their efficiency and reduce their operating costs without compromising on the quality of their end product. It also allows for faster turnaround time, better efficiency, and customised simple clean processes based on customers’ requirement. We continue to integrate automation and AI for some of our processes to improve uniformity and consistency in our end results. Our investment on high specification metrological equipment also allows us to provide greater accuracy, transparency of data collection and real-time documentation to our customers. We will continue to work closely and grow alongside our customers with our continuous innovation and process solutions while supporting them as they continue to advance in the leading-edge semiconductor technology. Ares Green Technology Corporation (“AGTC”), Taiwan - Over the last few years, Taiwan semiconductor industry has been leading the world in their most technologically advanced chips. With that, comes more complicated and sophisticated processes resulting in chamber process parts becoming more and more sensitive to contamination. As a leading service provider and our ability to handle these very sophisticated parts have made us a trusted and critical partner to our customers. In FY2021, AGTC once again achieved its highest ever revenue of RM310.4 million, an increase of 29.1% from a year ago. This achievement was attributable to the increased business from our key customers as a result of the ramp up of their advanced technology nodes. As announced last year, we purchased an industrial building located in the Southern Taiwan Science Park, Kaohsiung (Plant 2) at the price of NTD367.5million or RM53.3million. The Southern Taiwan Science Park (“STSP”) is one of the three main science-based industrial parks in Taiwan with key industries including integrated circuit, optoelectronics, precision machinery, telecommunications, computer peripherals, and biotechnology companies. It was also selected by the world’s leading integrated foundry for its 5nm and 3nm advanced manufacturing processes, making STSP the world’s largest IC industrial hub, according to its website. The decision to expand was made based on the projected significant increase in work from our customers and the anticipated multi-year of growth in the semiconductor space in years to come. This new facility will be fitted with the most advanced specialised equipment, comprehensive waste-water treatment and scrubber systems amongst others. Our new “state of the art” facility will allow us to position ourselves as the leading advanced high precision chamber parts service provider for the next few generations of leading-edge chips. The infrastructure and size of this plant will provide us with sufficient space to further expand our production capacity. This facility is on track to be completed in the second half of this year and will be commissioned in phases. In Progress Quality Check/Control
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