KUALA LUMPUR (June 5): Dual-listed UMS Integration Ltd (KL:UMSINT) plans to invest US$3.6 million (about RM14.5 million) to expand its manufacturing footprint in Vietnam, as part of its strategy to strengthen its presence in the regional semiconductor supply chain.

The group will hold a 51.6% stake in the new entity formed via the merger of Viet Nguyen Mechanical Precision Company Ltd, Central Metal Mechanical Company Ltd and Global Metal Plating Company Ltd, which provide precision engineering, metal processing and plating services to the semiconductor and related industries, according to UMS Integration’s filing with Bursa Malaysia.

UMS Integration signed a memorandum of understanding with the companies’ founding shareholders, Tran Thanh Van and Nguyen Trong Dang, on Thursday (June 4). The investment will be made via a share subscription or other agreed structure.  The investment will be funded internally and is not expected to materially impact earnings or net tangible assets for the current financial year.

“The proposed transaction is expected to strengthen the group’s operational presence in Vietnam, enhance its manufacturing capabilities and create opportunities for business and operational synergies,” UMS Integration said, adding that the exercise will support its long-term growth objectives and position the group to better serve customers in the semiconductor, precision engineering and related industries.

“The board believes that, subject to the results of satisfactory due diligence, the proposed transaction is in the interests of the group and the company’s shareholders as a whole,” it added.

According to UMS Integration’s 2025 annual report, Singapore accounted for 62.4% of the group’s revenue last year, followed by Malaysia (13.3%), the US (10.2%) and Taiwan (7.2%). The remainder was contributed by other markets.

Last month, UMS Integration reported a 43% jump in net profit for the first quarter ended March 31, 2026 (1QFY2026), driven by stronger sales and a turnaround in foreign exchange gains.

Net profit rose to S$14 million from S$9.83 million a year earlier, supported by a foreign exchange gain of S$1.52 million compared with a loss of S$1.05 million previously, which helped offset lower gains from the disposal of fixed assets.

Quarterly revenue increased 20% to S$69.39 million from S$57.65 million, lifted by stronger contributions from its semiconductor, aerospace and materials distribution segments.

UMS Integration, which is primarily listed on the Singapore Exchange, undertook a secondary listing on Bursa Malaysia in August last year.

Shares of UMS Integration closed 23 sen or 2.79% lower at RM8 on Friday, valuing the group at RM7.1 billion.