GEORGE TOWN: The automotive industry is now looked upon as a growing source of revenue for some of the electronics manufacturing companies in Penang for 2018.

Pentamaster Corp Bhd, MMS Ventures Bhd, Vitrox Corp Bhd and PIE Industrial Bhd are among the companies tapping into the growth potential of the automotive sector.

The electronics and semiconductor industries are cyclical and volatile in nature, making it necessary for local electronics manufacturing firms to broaden their revenue and customer base.

“After eight quarters of growth, it is necessary to establish a foothold in another business area to reduce dependency on the electronic segment, which covers also the smart device and computing industries.

“The growth of the automotive semiconductor market is expected to reach US$48.78bil by 2022, growing at a compounded annual growth rate (CAGR) of 5.8% between 2016 and 2022.

“We have identified the automotive industry as a future positive contributor to our revenue,” Pentamaster Corp executive chairman CB Chuah said.

Pentamaster Corp expects the growth of the automotive industry to generate more demand for its test equipment.