Japanese materials maker Mitsui Kinzoku will build a new copper foil plant in Malaysia, its board decided on 10 November, with a total investment of about JPY 190 billion, according to the company's announcement. At Bank Negara Malaysia's noon middle rate on 11 November, RM2.5645 per 100 yen, that is about RM4.87 billion.
Quick facts
- Cost: about JPY 190 billion, or roughly RM4.87 billion at BNM's 11 November rate.
- Where: near Mitsui Copper Foil (Malaysia) Sdn Bhd, the subsidiary the company lists at Section 27, Shah Alam, Selangor.
- What: MicroThin ultra-thin copper foil and VSP foil for high-frequency circuit boards.
- When: operations start in phases from April 2031.
What the plant will make
MicroThin is copper foil 1.5 to 5 microns thick, held on a carrier foil that is peeled off once it is laminated to the board, so makers can etch finer circuit lines. Mitsui Kinzoku lists its uses as semiconductor package substrates and smartphone motherboards, and says, by its own estimate, it holds over 95% of the global market for carrier-supported ultra-thin copper foil.
VSP is a smooth-surfaced foil for high-frequency printed circuit boards, where a rougher copper surface loses more of the signal. The company gives one reason for the plant: to keep supplying customers "amid the anticipated continued rapid growth of the AI and semiconductor markets".
Where the RM4.87 billion goes
Of the JPY 190 billion, about JPY 144 billion is for production equipment and other assets, JPY 32 billion for buildings and JPY 14 billion for land. At the same BNM rate, that is roughly RM3.69 billion, RM821 million and RM359 million. Mitsui Kinzoku says it will pay from cash on hand, borrowings and other sources.
How much it adds
By the notice's own table, the plant adds 600 tonnes a month of VSP in the financial year starting April 2031 and another 600 tonnes the year after, taking the company's VSP total across all sites to 2,600 tonnes a month. It adds 4 million square metres a month of MicroThin over three years, for a total of 12 million. The site can hold up to 3,600 tonnes a month of VSP, and the company says it will consider 5,000 tonnes a month across this and other sites if the market keeps expanding.
The company expects no material effect on its results for the year to March 2027, and says the plant should add to profit from the year starting April 2031. It forecasts its copper foil business's operating profit at 5.5 times the FY2025 level by FY2033, counting this plant and its other investments planned through FY2030.
Where it fits
The plant joins the chip supply chain developments we have tracked this year, from Malaysia's 2026 electrical and electronics export outlook to Intel's Penang chip plant.
The notice names no state, no address for the new site and no hiring figure. It says only that the plant will sit near the existing Malaysian subsidiary.
