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Globetronics to diversify

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GEORGE TOWN: The robust growth prospects in the diagnostics care market has prompted Globetronics Technology Bhd to consider diversifying into manufacturing of point-of-care diagnostics devices in the foreseeable future.

Towards this end, Globetronics is now exploring the investment potential with a a foreign company, said group chief executive officer Heng Charng Yee.

“We aim to kick off the project within the next 24 months,” she told StarBiz recently.

Globetronics is currently involved in developing and manufacturing integrated circuits, light-emitting diode components, encoders and sensors, quartz crystal products, timing devices and related products.

Sensors are the leading revenue contributor for the group.

Citing a report by Fortune Business Insights, Heng said the point-of-care diagnostics market size will rise from US$36.37bil (RM162.8bil) in 2022 to US$51.94bil (RM232.5bil) by 2029, growing at a 5.2% compounded annual growth rate or CAGR.

“The point-of-care diagnostics market has increased significantly particularly over the past two years due to the Covid-19 pandemic.

“During the pandemic, key market players introduced more new products that impacted the point-of-care diagnostics device market positively,” she added.

According to the report, North America had a diagnostic care market size valued at US$14.48bil (RM64.8bil) in 2021, dominating the global market share because of rising infectious and chronic diseases among the population.

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“Europe is also expected to hold the second highest position in the global market during the forecast period due to the increasing production of innovative products.

“Also, increasing government investment in research and development is expected to drive regional market growth,” the report said.

On the group’s existing business operations, Heng said: “We are planning to commence production for three new sensors over the next six to eight months.

“We have allocated about RM50mil to develop the new sensor projects.”

In addition, Globetronics also aimed to start the production of high brightness optical modules in the fourth quarter of this year.

“These optical modules are used in sensing and imaging systems of next-generation consumer electronics to produce high-brightness virtual reality displays,” Heng noted.

To date, the group’s customers have completed qualifying the prototypes of two new sensor projects.

“We will develop one of the sensor projects for Advanced Driver Assistance Systems in autonomous vehicles, which will fuel the demand for optical sensors.”

Heng said the group was now waiting for customers feedback on their forecast before it can start commercial production of the sensors.

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