Mitsui Kinzoku to build ¥190 billion copper foil plant in Malaysia
Mitsui Kinzoku will build a new copper foil plant in Malaysia, with production starting in phases from April 2031. The Japanese materials maker says the expansion is needed to keep up with continued rapid growth in AI and semiconductors.
The total investment is approximately JPY 190 billion (EUR 1.08 billion), according to a notice from Mitsui Kinzoku. About JPY 144 billion of that goes to production equipment, JPY 32 billion to buildings and JPY 14 billion to land. The plant will be located near the company’s existing Malaysian subsidiary, Mitsui Copper Foil (Malaysia). It will be funded through cash on hand, borrowings and other sources.
The plant will make two products: MicroThin, a carrier-supported ultra-thin copper foil, and VSP, an electrodeposited copper foil for high-frequency circuit boards. Capacity will be added in steps from fiscal 2031 to fiscal 2033. Over those three years, the new plant adds 4 million square metres a month of MicroThin and 1,200 tonnes a month of VSP. Across all its sites, the company’s total capacity would then reach 12 million square metres of MicroThin and 2,600 tonnes of VSP per month.
The site can also be expanded further. According to the company, it has room for up to 3,600 tonnes a month of VSP capacity. If the market keeps growing, Mitsui Kinzoku will also consider reaching a combined 5,000 tonnes a month across this and other sites.
The company also has high profit expectations for the business. Including investments already planned up to fiscal 2030, Mitsui Kinzoku expects operating profit in its copper foil business to reach 3.2 times the fiscal 2025 level in fiscal 2030, and 5.5 times in fiscal 2033.
For PCB makers, the plant offers relief, but not soon. The first new capacity comes online in April 2031, more than four years from now.
