ITM Semiconductor ramps up e-cigarette production in Indonesia as sales surge 55%

ITM Semiconductor is ramping up mass production of e-cigarette devices through its Indonesian subsidiary, accelerating revenue diversification as the segment grows beyond the company's traditional focus on protection circuits and sensors.

The company said Monday its e-cigarette sales reached 42.1 billion won ($27.3 million) in the first quarter of this year, a 55.4 percent increase from 27.1 billion won in the same period last year. The segment accounted for roughly 32 percent of total revenue.

ITM Semiconductor established its Indonesian production subsidiary last year and has since completed installation of manufacturing equipment, secured specialized personnel and put quality management systems in place. Mass production of e-cigarette devices began in January, and sales have grown as output for both domestic and overseas markets has expanded.

The Indonesian subsidiary is located in the Cikarang area, with a site area of 13,000 square meters and a building area of 9,500 square meters. Completed in July last year, the facility is equipped with production lines and quality control systems designed to meet global customer standards.

"The full-scale launch of mass production at our Indonesian subsidiary marks the completion of a global production base for our e-cigarette business," CEO Na Hyeok-hwi said. "We will accelerate growth in the e-cigarette segment by expanding production capacity and strengthening our order competitiveness, while pursuing new business opportunities and diversification to enhance corporate value."