Mitsui Kinzoku plans Malaysian copper foil factory costing RM4.87 billion
The Japanese manufacturer expects a phased start from April 2031 as it expands supplies for semiconductor packaging and high-frequency circuit boards.
Mitsui Kinzoku Co Ltd plans to spend about RM4.87 billion on a copper foil factory in Shah Alam, Malaysia. The Japanese materials manufacturer said the project responds to anticipated growth in demand from artificial intelligence and semiconductor markets.
The company expects operations to start progressively from April 2031. Located close to its Malaysian subsidiary, the factory will produce MicroThin, an ultra-thin copper foil supported by a carrier for semiconductor packaging, alongside VSP foil for high-frequency circuit boards.
Mitsui Kinzoku put land acquisition spending at about RM360 million, construction at RM82 million, and equipment and other assets at RM3.69 billion. It said financing would come from existing cash, loans and other sources.
The facility is expected to add two million square metres to monthly MicroThin capacity by fiscal 2031, followed by a further two million square metres by fiscal 2033. VSP capacity is set to increase by 600 tonnes a month in fiscal 2031 and again in fiscal 2032, lifting the company's total monthly capacity to 2,600 tonnes.
According to Mitsui Kinzoku, the acquired land can accommodate capacity of 3,600 tonnes a month. Subject to market growth, it would consider taking combined VSP capacity at both locations to 5,000 tonnes monthly.
The company expects the project to contribute to profit growth from fiscal 2031. Its local subsidiary, Mitsui Copper Foil (Malaysia) Sdn Bhd, was founded in 1989, with commercial operations beginning in 1991.
