Liton Technology plans RM115.58 million investment for new factory in Malaysia

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Liton Technology Malaysia investment

Highlights

Liton Technology Corp has approved an RM115.58 million investment to establish a new factory in Malaysia, with land acquisition targeted for completion by the end of this year.
This investment aims to reduce reliance on China and Taiwan, address higher export costs and meet the needs of global customers.
The project is expected to strengthen Malaysia's position in Asia's electronics supply chain, particularly in data centre, electric vehicle and green energy components.

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

Investment details and project timeline

As reported by The Edge Malaysia, citing a filing with Taiwan's Market Observation Post System, Liton Technology Corp approved an investment of RM115.58 million to establish a manufacturing facility in Malaysia. Funding for the project is expected to come from a combination of internal funds and external financing, while land acquisition is targeted for completion by the end of this year.

The company said the move was driven by customer needs and its international expansion strategy. Liton produces etched and formed aluminium foil, key raw materials for aluminium electrolytic capacitors widely used in artificial intelligence, cloud computing, automotive electronics, electric vehicles, green energy and power infrastructure.

Malaysia's role in the supply chain strategy

The Malaysian facility is expected to provide Liton with another production base as customers intensify their search for alternative manufacturing locations outside China and Taiwan amid geopolitical uncertainty. The move will also help the company address higher export costs for aluminium foil produced in China.

Taiwanese media reports said the company will gradually add production lines after the facility is completed, depending on market demand. For Malaysia, the project could strengthen the country's position in the regional electronics supply chain, particularly in component segments supporting data centres, electric mobility and energy infrastructure.

In our previous coverage of the 2027 Budget to strengthen the semiconductor industry, we explained how targeted funding allocations help local companies move into higher-value segments such as integrated circuit design and advanced manufacturing. We also highlighted the government's focus on delivering investment projects, strengthening local supply chains and improving productivity, translating into broader economic benefits.

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