AMS Advanced Material Bhd (AMSB) plans to expand in Malaysia’s semiconductor and electronics system integration (ESI) by raising RM32.77 million (USD 6.9 million) through an initial public offering (IPO) for its ACE Market listing on Bursa Malaysia scheduled for April 23, 2026.

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Of the total funding, 24.73 per cent will be allocated to establish a licensed manufacturing warehouse in Penang, while 21.05 per cent will support the group’s aluminium architectural products manufacturing.

“With Malaysia experiencing a boom in the semiconductor and ESI segment, this is the advantageous moment to raise funds and scale up our operations, primarily through capital expenditure on machinery and processing facilities," said managing director Keith Keh Teng Yang. 

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He also added, “What we’re establishing is a licensed manufacturing warehouse, essentially a processing centre, allowing us to import materials duty-free, provided that at least 80% of our products are exported to clients.”

Keh noted the initiatives are expected to deliver revenue growth of 10 to 20 per cent.

Keh also emphasised that talent development remains a key priority post-listing. “With our aggressive plans for sales growth, having the right people in place is critical. In terms of labour and technical skills, we’re in a strong position," he said, noting that sourcing skilled engineers remains a challenge, particularly in Penang, where demand continues to push wages higher.

“Part of our strategy includes determining whether we can develop engineers internally or if we have to source them externally." 

“We have a young, dynamic talent pool and maintain strong ties with our customers. As we are based in Penang, it also gives us direct access.” Keh said, noting consistent delivery over the past three years.

The company’s semiconductor segment has shown strong growth since FY2023. Revenue rose from RM60 million (USD 15.26 million) to RM90 million (USD 32.25 million) and further to RM129 million (USD 32.1 million).

Looking ahead, Keh expressed optimism about current performance, citing programme shifts from overseas to Penang as a key growth driver. “This is translating into organic, sustainable expansion. I believe this momentum will continue, and it’s reminiscent of the 1970s, when Penang became a hub for technology companies," he said.

Operating within a concentrated supply chain, AMSB positions itself as a specialised processor between mills and end-users, focusing on services such as plate cutting, milling and four-axis machining. The IPO application closes on April 10, 2026.

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