Comet and Penang, Malaysia: a mutually beneficial partnership

June 26, 2023

We are proud to be part of a high-quality supply chain that meets all established product performance standards and expectations. In 2020, we expanded our supply chain when we opened a production facility in Penang, Malaysia.

InvestPenang - a nonprofit entity of the Penang state government - organized a Supplier Day at the end of 2022 attended by 120 key industry players.

Desmond Shyu, Director Global Supply Chain, Comet Technologies Malaysia Sdn Bhd, was invited to speak on a panel titled

Achieving supply chain resilience:
Strengthening the metal precision & engineering ecosystem.

The goal of the discussion was to provide participants with the latest information on local sourcing opportunities, supplier onboarding criteria, and parts qualification processes.

"Comet is proud to
contribute to the
strengthening of the local
engineering ecosystem
in Penang."

Desmond Shyu

Director Global Supply Chain

We recently spoke with Desmond Shyu about Comet's presence and role in Penang.

You were selected to speak on the panel at InvestPenang Supplier Day. What were the key takeaways for attendees?

Comet is relatively new in Malaysia. Supplier Day was an excellent opportunity to introduce Comet and showcase our products to a large crowd of enthusiastic local suppliers. The audience were impressed with Comet’s niche and market-leader status, and many reached out with great interest in doing business with us.

What are the part requirements for a supplier in the semiconductors industry supplier in Malaysia?

Suppliers must meet the CE! (Copy Exact) compliance, which includes Change Management (materials, manufacturing location, manufacturing process, sub-tier change, parts obsolescence). Copy Exact is a policy that requires all manufacturing process steps that might affect the form, fit and function of raw material, semi-finished product and finished product to remain fixed or not to be changed without prior notification and approval from Comet. It is a semiconductor industry wide standard that ensures that our customers always receive consistent performance from our products.

Suppliers shall be ISO9001 certified and have a robust FAI (First Article Inspection) process in place.

How does Comet provide value to the local industry?

Due to the uniqueness of CE! and its lengthy and stringent supplier selection, FAI, and qualification process, Comet has helped set higher standards and expectations for local industry when it comes to manufacturing semiconductor products. This has positively influenced quality standards for the overall manufacturing ecosystem in Malaysia.

Can you elaborate on some of the challenges of localization?

Many local suppliers in Penang are familiar with semiconductor industry and have experience producing back-end products. When producing front-end products like Comet’s, many suppliers were overwhelmed by the more stringent specifications requirements. But with much persistence and endurance, coupled with Comet’s support, many suppliers have increased their knowledge and are able to meet Comet’s expectations and industry standards.

At InvestPenang Supplier Day, Desmond Shyu and his team presented Comet's sourcing and localization opportunities and also spoke on a panel discussionAdditionally, local companies presented business-matching opportunities.

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Evolving with market needs in Penang, Malaysia

According to InvestPenang, Penang continues to thrive as a key manufacturing hub for fabricated metal products. In 2021, the state garnered heightened investments from fabricated metal products, reaching RM831 million with a 5-year compound annual growth rate (CAGR) of 39%. In 2022, the momentum continued: From January to June, Penang clocked RM2 billion investments from fabricated metal products, 90% of which were due to direct domestic investments.

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