KUALA LUMPUR (June 28): Unisem (M) Bhd is closing its facility in Batam, Indonesia, that has been bleeding since 2011.

In a filing with Bursa Malaysia today, the semiconductor manufacturer said its indirect unit, PT Unisem, had informed its employees, customers, suppliers, creditors and other stakeholders that it will discontinue the operations.

“The decision to discontinue operations in PT Unisem was arrived at due to continuing losses over the years since 2011. Despite recent investments, the business outlook for PT Unisem continues to be weak,” it said.

According to its website, Unisem’s factory in Batam Island is a one-stop shop facility, which provides Wafer Probe, Wafer Backgrinding, Assembly Packaging, Final Test and Drop Shipment.

The company assembles and tests leaded and array packages on a high volume basis in the 345,000 square feet facility.

Located approximately 10 miles from Singapore, Batam is an island that benefits from free trade zone incentives provided by the Indonesian Government.

Unisem said the management will be working in phases to scale back the operations ahead of closing the facility on Sept 30.

Unisem’s share price last traded yesterday at RM2.46, for a market capitalisation of RM1.79 billion.