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SMT Targets New Growth Phase with Planned Investment of Over THB 500 Million to Develop New Factory, Expand Production Space by 50%

October 28, 2026

Stars Microelectronics (Thailand) Public Company Limited (SMT) is advancing a major production capacity expansion, with plans to invest an initial estimated amount of over THB 500 million in a new manufacturing facility. In Phase 1, the project will add approximately 10,000 square meters of factory space, increasing the Company's total factory building area from approximately 22,000 to 32,000 square meters, representing an increase of around 50%. The expansion aims to strengthen production capacity in response to projected demand from existing customers and opportunities from new customers. By strategically allocating space and production capacity across its two facilities, SMT aims to support the growth of its PCBA, Box Build, OSAT, and Optics & Photonics businesses, enhance its competitiveness, and position itself for long-term growth. Production at the new facility is targeted to commence in the third quarter of 2027.

 

Mr. Prompong Chaikul, Chief Executive Officer of SMT, stated that the Company sees significant growth opportunities driven by rising demand for electronic and semiconductor products, together with future demand forecasts received from customers. SMT is therefore preparing additional space and production capacity to support business expansion. On 28 October 2026, the Company signed a land purchase agreement for approximately 17 rai within Asia Industrial Estate (Suvarnabhumi), Bang Bo District, Samut Prakan Province, for the construction of a new manufacturing facility. This marks an important milestone in strengthening the Company's ability to accommodate future orders and establishing a solid foundation for sustainable growth.

 

Management initially estimates the additional investment required to develop the new factory, covering project preparation, factory construction, utility infrastructure, machinery, and production equipment. Including the land acquisition cost, the total initial investment for Phase 1 is estimated at over THB 500 million. However, the development budget remains under review, with management scheduled to submit the detailed investment proposal to the Company's Board of Directors for further consideration on 5 November 2026.

 

The new factory is planned to comprise approximately 10,000 square meters of building space on around 4 rai of land, out of the total land acquisition of more than 17 rai. This will increase the Company's total factory building area from approximately 22,000 to 32,000 square meters, or around 50%, while retaining additional land for future business expansion. The project reflects SMT's proactive investment in infrastructure to support its long-term growth.

 

 

Mr. Prompong further explained that SMT plans to allocate space and production capacity between the two facilities according to the specific requirements of each business segment. The new factory will primarily focus on printed circuit board assembly (PCBA) and electronic product assembly (Box Build). Its production setup will involve the installation of selected new machinery alongside the relocation of certain equipment from the existing factory.

 

Relocating selected machinery will free up space at the existing facility, allowing SMT to accommodate future capacity expansion in its Outsourced Semiconductor Assembly and Test (OSAT) and Optics & Photonics businesses. Any investment required to expand production capacity at the existing factory will be evaluated separately and will not be included in the estimated investment of over THB 500 million for the new factory project.

 

The strategic allocation of operations between the two facilities is expected to improve the utilization of space, machinery, and production resources while providing greater flexibility in managing capacity to meet the needs of different customer segments. In addition, having an additional manufacturing site will strengthen the Company's business continuity capabilities by providing greater flexibility in production planning and job allocation in accordance with process requirements and customer specifications.

 

Regarding the project timeline, SMT expects to complete the land transfer in November 2026 and plans to begin construction of the new factory in December 2026, with production targeted to commence in the third quarter of 2027. These timelines are preliminary and remain subject to approval of the detailed investment plan by the Board of Directors, the receipt of relevant permits, and the readiness of construction and machinery installation.

 

Mr.Chali Sophonpanich, Chairman of Asia Industrial Estate Co., Ltd., added that SMT is a leading Thai manufacturer specializing in advanced semiconductor and electronics assembly, with the expertise and manufacturing technologies to meet the needs of modern industries, including data centers, next-generation automotive applications, and other advanced technologies.

 

“I believe this investment by SMT will not only mark an important milestone in the Company's growth but also contribute to strengthening Thailand's electronics industry and enhancing the country's competitiveness in the industries of the future.”

 



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