Japanese metals producer Mitsui Kinzoku plans to invest approximately 190 billion yen (US$1.2 billion) in a new copper foil manufacturing facility in Malaysia, as demand increases from artificial intelligence and semiconductor industries.
The investment, reported on November 11, will cover land acquisition, buildings and production equipment. The company plans to acquire land near its existing Malaysian facility, with operations at the new plant scheduled to begin in phases from April 2031.
The facility will manufacture two types of copper foil: VSP, used in high-frequency printed circuit boards, and MicroThin, an ultra-thin copper foil used in semiconductor packaging and optical modules.
The new plant is expected to add monthly production capacity of 1,200 tonnes of VSP foil and approximately four million square metres of MicroThin foil. Production is expected to be introduced in stages over three years.
VSP copper foil is used in high-performance communication equipment, including servers, routers and switches. Its demand has increased as AI infrastructure requires faster data transmission and more advanced circuit boards.
MicroThin is used in semiconductor package substrates and optical modules. Demand for the material is also rising with the expansion of AI servers and data centres.
Mitsui Kinzoku operates in Malaysia through its subsidiary, Mitsui Copper Foil (Malaysia) Sdn Bhd. The planned facility will expand its manufacturing presence in the country and increase its capacity to supply materials for advanced electronics.
The investment forms part of the company’s longer-term production expansion plans. Mitsui Kinzoku expects demand for specialised copper foil to continue growing as semiconductor manufacturing and AI infrastructure expand.
