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KESM Industries Berhad is principally engaged in burn-in and testing services for the semiconductor industry. It is recognized as the world's largest independent burn-in and test service provider, primarily serving global semiconductor manufacturers.
However, KESM’s revenue declined 20 % from 2019 to 2024. According to the company, the revenue decline was not due to market loss or obsolescence, but rather a strategic pivot into higher-value segments (EV and AI), hindered by macroeconomic disruptions and long product development cycles.
But the turnaround signs in 2024 suggest that the business may be at an inflection point.
• Revenue rose 6 % in 2024 compared to that in 2023. This marks the first year-on-year growth since 2021.
• After a net loss in 2023, KESM recorded a modest net profit of RM0.2 million in 2024.
• KESM noted improvements in the automotive semiconductor demand, especially for EV applications
• The company is seeing rising orders for advanced power management chips used in AI systems, a new but rapidly growing vertical.
In short, 2024 marked a bottoming out and a pivot toward recovery. While the profit was still minimal, the operational and strategic indicators point to early-stage momentum that could accelerate if EV and AI testing volumes continue to grow.