45 Management Discussion And Analysis / Business Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 BUSINESS REVIEW Strategic Focus Going Forward As the global semiconductor landscape becomes more specialised and value-driven, the Group is evolving our business model to compete not on volume, but on differentiation. Our strategic focus is to transition SilTerra toward being a solutions-driven foundry, supporting critical applications in areas such as AI infrastructure, advanced sensing and health tech. We are shifting away from commoditised production by refining our product portfolio and scaling technologies that offer stronger pricing power and long-term relevance. This includes expanding our capabilities in complex wafer processing and accelerating R&D to shorten time-to-market for emerging technologies. To deepen our competitive edge, we are also enhancing our end-to-end customer support - from design enablement to rapid prototyping - to attract high-value clients looking for speed, flexibility and collaborative innovation. Beyond technology, the IT Business Segment is also focused on strengthening operational resilience. This includes optimising our supply chain to minimise exposure to global disruptions and advancing our sustainability practices to meet growing customer expectations for responsible manufacturing. Through these efforts, SilTerra aims to be recognised not just as a foundry, but as a strategic partner in enabling nextgeneration technologies. By doing so, we can drive value for the Group while contributing to national and regional innovation agendas. To capture these opportunities, we are prioritising: Product mix enhancement: Increasing the share of higher average selling price products to improve margins and reduce reliance on commoditised core offerings. As part of this strategy, we are retiring lower-margin products to streamline our portfolio and focus on emerging technologies critical to sectors such as automotive and the Internet of Things (“IoT”). Capacity ramp-up: Expanding production capabilities, including investments in 6 and 8-inch wafer capacity, which are better aligned with highvalue applications and emerging industry requirements. Process innovation: Investing in R&D and accelerating product qualification cycles to improve time-to-market and operational efficiency. Customer-centric manufacturing: Strengthening support services such as design assistance, testing and packaging to build deeper, longer-term client relationships. Strategic collaborations: Continuing to work with research and technology partners to fast-track innovation and access emerging global demand. By aligning our strategy with global technology shifts, we are positioning the Technology Business Segment to play a stronger role in tomorrow’s digital economy while building greater resilience, agility and value for the Group as a whole.
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