A letter from our
Group Managing Director,
To our stockholders, customers, partners, and employees:
MPI’s journey began in 1972, and as our company has grown, so has our belief in its role and vision for impact in the world. Today, we’re proud of our long history of enabling technologies to help create a brighter future.
It has been a difficult year for everybody. We’re witnessing an unprecedented health crisis across generations. My heart goes out to everyone out there who has suffered the loss of loved ones. I firmly believe that we are an adaptable & resilient species that shall overcome these turbulent times with focus, fortitude and discipline.
Our strong values have guided us through this past year, and our business performance during FY21 has been a reflection of that innate resilience and adaptability. We weathered the pandemic very well by prioritizing the health & wellbeing of our employees, while supporting our customers not just in their mission-critical operations but also in their growth & transformation journeys. Our agility, resilience and responsiveness during the crisis has earned us tremendous goodwill from customers and enhanced our standing in the market.
As I write this letter, we continue to navigate a global pandemic, a climate crisis and more. This has been a defining moment for our society – and a defining moment for MPI.
Strong business momentum and multi-year technology cycle
Semiconductor demand is expanding globally with the confluence of several trends. These include digital technology led transformation driven by 5G, IOT, artificial intelligence (AI) & machine learning, and big data, as well as automotive industry transformation driven by electric vehicles and autonomous vehicles. These technologies are changing the world at an accelerated pace, and represent a multi-year cycle that gained further momentum during FY21 due to Covid-19 induced trends such as work from home, enterprise digitization, etc. These trends proliferate the impact of each other and collectively, they’re reshaping every aspect of our lives and work. This in turn is reshaping the business of packaging, assembly & testing innovation with surging demand from segments such as data centers/ servers, consumer & communications, and automotive. In this evolving landscape, MPI offers the necessary depth and breadth of assembly & testing technologies, manufacturing excellence, and scale that our customers need to capitalize on these opportunities and advance the next-generation technological innovations.
This was highlighted during FY21, when after the initial impact from lockdown-related disruptions, we promptly returned to a sharp growth trajectory, and ended the financial year on a very strong note, with industry-leading profitability and an all-time high revenue. While we are in a robust position of financial strength and growth, we have a significant deal of exciting work ahead of us.
I firmly believe that MPI can be one of the leading global semiconductor companies by realizing its vision of becoming a preferred OSAT for automotive segment with revenue in excess of around US$ 1 billion by 2027. For the road ahead, we have identified our strategic priorities that will strengthen our position for success:
Expand manufacturing capacity to capture opportunities while leveraging the power of automation
With our strong product portfolio & roadmap, we are well positioned to capitalize on the opportunities presented by the favorable industrywide trends. But we must move faster to outpace the competition, while unlocking the massive potential in our business by advancing our Industry 4.0 vision and deploying automation technologies to build new facilities and upgrade our existing infrastructure in Malaysia and China over next 2-3 years. This will create great opportunities for us in terms of productivity, quality and speed. We will position ourselves as the authority in industrial automation, with ability to guide other companies on their automation journeys, thereby, moving the entire industry forward.
Diversify into new markets and new value chain segments
We must showcase that our customers can depend on us for their products and forward-looking strategies. We look forward to be even closer to our customers in US/ EU to nimbly deliver to them with quality and at scale. This could potentially include setting up fully automated manufacturing presence, and venturing into module business/ design via organic/ inorganic routes. This will enable us to invest in manufacturing & technology leadership in areas such as Silicon Carbide (SiC), for instance.
Attract & retain the best talent while advancing an inclusive and diverse team culture
As our society continues to tackle the various social issues around human rights and systemic discrimination, we are committed to building a diverse, inclusive and vibrant team & culture. This culture strongly encourages all voices to be welcomed and heard. Our efforts are reflected in the representation of women globally across all our operations at 45% (as of FY21), which is significantly higher than the semiconductor industry average.
While we’re incredibly proud of the gains we have seen so far, we realize that we are still just warming up for the road ahead. We will always challenge ourselves to do better. And, even better.
I’m proud to be part of a company, where everyone works diligently to support not only our employees but also to stand up for the community we live in, especially in these turbulent times. I am excited to lead MPI, and with our extremely talented team and our industry partners around the world, I am looking forward to developing & delivering great products & services for enabling cutting edge technologies. Also, we must prosper responsibly and empathetically!
We have our best days and a powerful future ahead of us.
Please take care and stay healthy.
Manuel Zarauza, Group Managing Director
Malaysian Pacific Industries