Mitsui Kinzoku invests RM4.87 billion in new copper foil plant in Malaysia

Mitsui Kinzoku invests RM4.87 billion in new copper foil plant in Malaysia
Major investment in the copper industry

Rising demand from the artificial intelligence and semiconductor markets is prompting Mitsui Kinzoku to expand its copper foil production capacity in Malaysia. The 190 billion yen project is scheduled to begin operations in phases from April 2031 near the company's existing facilities in the country.

Highlights

  • Mitsui Kinzoku invests RM4.87 billion to build a new copper foil plant in Malaysia, with phased operations scheduled to begin in April 2031.
  • The investment includes 14 billion yen for land, 32 billion yen for buildings and 144 billion yen for equipment, adding 400 units of MicroThinTM capacity and 1,200 tonnes per month of VSPTM capacity over three years.
  • The new plant strengthens Malaysia's position as a high-value electronics supply chain hub, supporting demand from the AI and semiconductor sectors.

This article was translated from the original. Read the original version by our correspondent here.

Investment details and capacity plans

According to The Edge Malaysia, citing Nikkei Asia, Mitsui Kinzoku has allocated 14 billion yen for land acquisition, 32 billion yen for buildings and 144 billion yen for production equipment at the new plant.

The plant will be built on land near the company's existing domestic facilities, with operations scheduled to begin in phases from April 2031. Over three years, the new facility will add 400 units of MicroThinTM capacity, at around 10,000 square metres per month, as well as 1,200 tonnes per month of VSPTM capacity.

VSPTM is a type of electrolytic copper foil designed specifically for high-frequency circuit boards, while copper foil is a key material for optical communications devices in AI data centres.

Impact on Malaysia's electronics supply chain

The move strengthens Malaysia's position in the high-value electronics materials supply chain as the expansion of AI data centres and the semiconductor market continues to drive demand for optical communications components.

Mitsui Kinzoku operates in Malaysia primarily through Mitsui Copper Foil (Malaysia) Sdn Bhd, which manufactures high-precision copper foil for the electronics, semiconductor and AI data centre sectors. The new investment is expected to help the company ensure a more stable supply for customers in high-tech segments.

We previously reported the approval of 27 data centre projects worth RM225.97 billion, reflecting the expansion of the country's digital infrastructure.

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