Business

German tech company confident US tariffs will not impact its exports

SCHOTT Penang said there is no direct impact for now unless the global trade situation deteriorates.

Updated 1 year ago · Published on 26 May 2025 1:23PM

German tech company confident US tariffs will not impact its exports
The company recently marked its 50th operational anniversary celebrations at the E & O Hotel in Penang. - May 26, 2025

by Ian McIntyre

SCHOTT Penang said there is no direct impact for now unless the global trade situation deteriorates.

GERMAN tech company - SCHOTT Penang believes it has the capacity to withstand the proposed United States (US) tariffs on exports originating out of Malaysia.

It said there is no direct impact for now unless the global trade situation deteriorates.

SCHOTT top management does not see any direct impact as its cutting-edge glass-based products are exported throughout the world, and not just to the US.

The company recently marked its 50th operational anniversary celebrations at the E & O Hotel in Penang.

Its board members Dr. Andrea Frenzel, Dr. Ing Heinz Kaiser, and SCHOTT Penang site manager Peter Berberich spoke about the company's historic foray into Penang.

Frenzel said the company’s production capacity has the ability to withstand the negativity from the tariffs, stressing that the products are essential in the production of many tech products.

In a briefing to partners, associates and engineers here, Schott revealed that it manufactures industrial and commercial glasses for rod lenses, wafers, prisms and ultra thin glasses for the consumers, digital, semiconductor, medical, industrial and augmented reality sectors.

Berberich shared that the SCHOTT Penang with another sister facility in Kulim, Kedah, are contended with Malaysia's eco-system, which provides tremendous support to the company's production capacities.

From an initial assembly team of 80, it has now grown to 1,500 Schott staffers in the country, majority of whom are Malaysians, said Berberich.

The Malaysian sites provide high-end processing for high-tech industries, including AR, semiconductors, medical, and other industrial applications.

As the first manufacturing hub in Asia, SCHOTT Malaysia continues to increase production capacity in Penang and Kulim.

The anniversary event was graced by Datuk Hans Peter Brenner, the Honorary Consul of Germany and representatives from the Malaysian Investment Development Authority (MIDA).

The Penang plant was founded 50 years ago as the Germany-based company’s first high-tech glass processing hub in Asia, and the Kulim site was inaugurated in September 2024 to further build up production capacity.

“Malaysia and Germany are major trading partners and have always supported each other, especially in the business and education industries.

“SCHOTT’s presence in Malaysia is a great example of how both countries have come together, combining resources and manpower to create products and services that shape the future of technology in the world.

“As time goes on, we hope to continue this incredible partnership with Malaysia, further strengthening our ties through teamwork and resilience,” said  Brenner,

For over a decade, SCHOTT has provided the semiconductor industry with solutions based on specialty materials.

For example, our glass panels that offer strong precision for glass core substrates (GCS).

From front-end to back-end manufacturing, SCHOTT offers glass solutions that meet the highest requirements for performance, integration and energy efficiency-crucial for applications in AI, high-performance computing and autonomous systems."

SCHOTT is a 100 per cent subsidiary of the Carl Zeiss Foundation, which was founded in 1889 by physicist and entrepreneur Ernst Abbe, with the support of Otto Schott, to promote the research of science and technology, and to create an open environment for scientific breakthroughs. - May 26, 2025.

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