As Malaysia solidifies its position as the strategic hub for the Asia-Pacific Electronics and Electrical (E&E) and Outsourced Semiconductor Assembly and Test (OSAT) sectors, the challenges for manufacturers have expanded from simple capacity enhancement to highly complex dynamic decision-making. DigiHua Intelligent Systems (DigiHua), a leader in smart manufacturing, and Axe Innovation, an AI strategy developer, officially signed a Memorandum of Understanding (MOU) today. The two parties will integrate DigiHua’s proprietary “Industrial RAG (Retrieval-Augmented Generation)” technology to target the Malaysian electronics assembly and OSAT supply chains, providing intelligent solutions with second-level responsiveness.
Empowering the Shop Floor with AI Agents: Professional Data Foundations Enhanced by Axe’s Interaction Technology
This collaboration transforms DigiHua’s 30+ years of industrial data foundations into actionable power for Southeast Asia’s high-volatility markets. DigiHua’s solution architecture integrates its proprietary MES (Intelligent Manufacturing Execution System) and APS (Advanced Planning and Scheduling System). Through DigiHua’s industrial RAG technology, internal factory maintenance logs, production journals, and historical records are vectorized; this is paired with Axe Innovation’s expertise in interaction orchestration and Large Language Model (LLM) entry point technology to strengthen the AI’s understanding of user intent.
DigiHua offers the following specialized AI product features tailored for the Malaysian E&E industry:
- Solving E&E Assembly (SMT) Yield Bottlenecks: For High-Mix Low-Volume (HMLV) assembly needs, DigiHua’s AI Agent can instantly retrieve historical data from the RAG knowledge base. It provides real-time diagnostics for assembly anomalies, such as component validation failures or line stalls, helping engineers quickly troubleshoot.
- Optimizing Complex OSAT Scheduling: Facing frequent rush orders and multi-process challenges in the OSAT sector, DigiHua’s AI Production Planning Agent links directly with the sAPS system. It proactively offers dynamic decision suggestions, such as “opening backup production lines” or “re-prioritizing work orders,” to maintain high On-Time Delivery (OTD) rates.
- Strengthening Equipment Maintenance Across Multi-site Factories: By vectorizing equipment maintenance logs in sMES, floor personnel can use the Equipment Prediction Agent to obtain highly precise repair guidance instantly. This significantly reduces Mean Time to Repair (MTTR) and mitigates technical labor shortages.
Mr. Allen Yan, Chairman of DigiHua Intelligent Systems, stated: “Malaysia is the core of the Asia-Pacific electronics chain. The AI Agents we are launching are not just conversation tools, but ‘actionable assistants’ that communicate directly with shop-floor systems. Through technical exchange with Axe Innovation, we can more fluidly provide Southeast Asian manufacturers with intelligent decision suggestions rooted in ‘Industrial DNA’.”
Mr. Faris Lodin, CEO of Axe Innovation, emphasized: “By feeding factory-specific data DNA into LLMs, we are not just solving IT problems, but giving factories the ability to self-diagnose and evolve. This solution will help Asia-Pacific manufacturers gain highly resilient supply chain responsiveness in a competitive market.”
Deepening Southeast Asian Presence: Debut at METALTECH
Following the official activation of the agreement, DigiHua is accelerating its expansion in Malaysia. DigiHua will participate in the “METALTECH & AUTOMEX” exhibition in Kuala Lumpur from May 20–23, 2026.
Business owners and professionals interested in DigiHua’s AI Agents (such as the AI Production Planning Agent, OTD Analysis Agent, and Scheduling Analysis Agent) are invited to visit the booth. We will demonstrate how AI performs real-time diagnostics and decision support in E&E assembly and OSAT environments.
About DigiHua Intelligent Systems (DigiHua)
DigiHua is a leading Asia-Pacific provider of smart manufacturing solutions with over 30 years of experience in APS and MES development. Recently, it launched the industry’s first family of AI Agents designed specifically for manufacturing, empowering big data through industrial RAG technology to help over 2,200 manufacturers achieve data-driven management.
About Axe Innovation
A professional AI strategy consulting and system development company providing AI strategy, consulting, and implementation services across industries. It specializes in LLM interaction orchestration and data science to help enterprises achieve business growth through AI-driven decision models.
Disclaimer
This press release is issued pursuant to a Memorandum of Understanding (MOU) between DigiHua Intelligent Systems and About Axe Innovation and is provided solely for informational and disclosure purposes. It does not constitute investment advice, an offer, solicitation, commitment, or any legally binding commercial arrangement. The collaboration scope, technical direction, product concepts, performance indications, timelines, and market expectations described herein are forward-looking statements and are subject to risks and uncertainties, including but not limited to technical feasibility, commercial terms, market conditions, regulatory requirements, and other unforeseen factors. Actual results may differ materially from those expressed or implied. Any legally binding rights and obligations shall be subject to definitive agreements executed by the parties. All intellectual property rights remain with their respective owners.
