KT&G Supplier ITM Semiconductor Establishes Manufacturing Plant in Indonesia to Meet Market Expansion and Order Demand

Aug.14

ITM Semiconductor announced on August 14 that it has set up a heated tobacco manufacturing plant in Cikarang, Indonesia, aiming to boost product supply in response to new orders from KT&G and ongoing market expansion.

Key Points:

Plant development: ITM Semiconductor’s Indonesian subsidiary, established in July, has a total floor area of 9,500 square meters and is scheduled to begin production by the end of 2025.

Location advantage: The facility is located in an industrial zone 50 km southeast of Jakarta, with stable infrastructure for electricity and water. It is just 50 km from Tanjung Priok, Indonesia’s largest container port, ensuring convenient logistics.

Business scope and goals: The company now operates two factories—in Vietnam and Indonesia—positioning the new plant to meet KT&G’s orders and support market growth.

According to ITM Semiconductor, the new Indonesian subsidiary will begin equipment production in late 2025. The site benefits from reliable infrastructure, contributing to high production efficiency. Proximity to Tanjung Priok port enhances import and export operations for raw materials and finished goods, improving logistics performance. These advantages have attracted many global companies to establish operations in the region.

With this move, ITM Semiconductor now operates two manufacturing facilities—in Vietnam and Indonesia.

CEO Na Hyuk-hwi stated, “We will develop the Indonesian subsidiary into a global production base for the future growth of our heated tobacco business. We will strive to enhance customer satisfaction and corporate value by establishing a stable supply chain and rigorous quality control.”

References:

[1] 아이티엠반도체, 인도네시아 법인 설립...전자담배 해외 생산거점 추가 확보

Also Read:

[1] ITM Secures Order for KT&G’s New Heated Tobacco Product Lil Hybrid 4.0, Set to Launch in 2026

[2] KT&G Supplier ITM Semiconductor Posts $20M in Q1 2025 Heated Tobacco Sales, Up 5.6% YoY

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