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SCHMID Group N.V., a global leader in advanced manufacturing solutions for the electronics and semiconductor industries, announced that it has signed a preliminary manufacturing project letter of intent and investment framework agreement with local authorities in Banfu Industrial Zone, Zhongshan, Guangdong Province, China, regarding the establishment of a new manufacturing campus.
The planned facility will consolidate SCHMID’s existing manufacturing operations currently located at two separate leased facilities into a single company-owned production campus. As a result, SCHMID expects the new facility to provide nearly double the effective manufacturing capacity of its current China operations, through the extension of operational space, improved layout efficiency, streamlined logistics, and optimized production workflows. The facility is expected to provide significant production capacity growth capable of supporting an expected annual revenue substantially above SCHMID’s current China manufacturing capacity.
The investment supports SCHMID’s long-term “In China for China” strategy and is intended to address increasing demand for advanced wet-process equipment used in the manufacturing of high-end HDI boards, IC substrates, AI server boards and other advanced electronic applications, because Chinese customers increasingly require short delivery times, rapid project execution and local support capabilities.
The new manufacturing campus is expected to enhance SCHMID’s ability to respond quickly to customer requirements while improving operational efficiency through the consolidation of its existing operations into a single location.
The total investment for land acquisition, construction and related infrastructure is expected to be approximately €11 million. The agreement with local authorities provides for various development incentives including land use rights for long-term use by the local authorities.
SCHMID expects the majority of the project financing to be provided through local Chinese bank financing on partially subsidized financing terms with such financing anticipated to be primarily secured by the project assets and associated land-use rights.
Construction is expected to commence following completion of the final land transfer and permitting process and the conclusion of a final, binding agreement. SCHMID currently expects to begin operations at the new facility approximately mid-2027.
The establishment of a modern, company-owned manufacturing campus represents an important milestone in SCHMID’s development in China,” said CEO Christian Schmid. “The investment strengthens our ability to support customers in one of the world’s most dynamic electronics manufacturing markets while providing the capacity required for future growth.”
