Volkswagen's Xinshan plant expands shipments, 8 production lines focus on AI optical communications

The manufacturing base of PRO3C, a subsidiary of Volkswagen, in Johor Bahru, Malaysia, officially opened today. (Provided by Dazhongkong)

The PRO3C manufacturing base of Volkswagen Control (3701) in Johor Bahru, Malaysia, officially opened today. The factory passed customer verification in November last year and went into production at the end of the year. It entered mass production in the first quarter of this year and fully expanded scale shipments from the second half of the year. It currently has 8 surface mount technology (SMT) production lines and will continue to increase production capacity and output in accordance with customer orders and market demand to seize business opportunities in artificial intelligence (AI), high-performance computing (HPC) and high-speed optical communications.

Volkswagen Control pointed out that the Johor Bahru manufacturing base is located in i-Park Senai Airport City, Johor, and will support global needs in advanced technology fields such as AI, high-performance computing, data centers and semiconductors. As the Johor Bahru plant enters mass production and expands shipments, the group's manufacturing layout in Southeast Asia has also entered the stage of large-scale operation from strategic planning.

In terms of product layout, PRO3C continues to develop 800G, 1.6T and 3.2T flip chip optical transceiver modules, as well as related manufacturing capabilities such as co-packaged optics (CPO), linear drive optics (LPO) and silicon photonics (SiPh) to support AI infrastructure and high-speed data transmission market needs. Dakko has accumulated experience in manufacturing optical transceiver modules since 2008 and continues to strengthen advanced processes and related manufacturing capabilities.

In addition to expanding its manufacturing footprint in Malaysia, Volkswagen is simultaneously promoting the "Singapore-Johor-Singapore Twin Cities Collaborative Strategy" and plans to establish a regional innovation and supply chain center in Singapore, which will be responsible for global innovation, strategic procurement, supply chain management and international customer contact. The Johor Bahru plant will focus on advanced manufacturing, project execution, mass production and delivery, and establish a cross-border operation platform through the division of labor between the two places.

Jim Minzhi, chairman of Dazhongkong, said that what was opened this time was not just a factory, but the node of the group's cross-border operation platform in Johor, which will jointly serve global customers from Singapore and Johor. Today's global competition no longer depends on the size of a single factory, but on the company's ability to effectively connect manufacturing, supply chain, innovation resources and international customers. The group will combine Johor's manufacturing strength and Singapore's advantages in innovation, strategic sourcing and global connections to establish a more flexible and resilient regional operating platform.

In July this year, Dazhongkong signed a memorandum of cooperation with Malaysia's AME Elite Consortium and Singapore's JTC Corporation respectively, and Singapore's United Overseas Bank (UOB) provides cross-border financial services and regional business network support. In the future, talent recruitment will be carried out in stages in line with production capacity improvement and business growth. In the long term, the overall operations in Singapore and Malaysia have the potential to support more than a thousand employees. The actual situation still depends on market demand and operational needs.