KUALA LUMPUR (July 14): Engineering precision parts maker CPE Technology Bhd (KL:CPETECH) is partnering with Japanese surface-treatment specialist Kanekita Co Ltd to establish a semiconductor-focused manufacturing venture.
In a filing with Bursa Malaysia on Tuesday, CPE Technology said under the joint venture agreement signed on July 14, it will provide its manufacturing capabilities while Kanekita contributes its passivation technology expertise to produce high-value stainless-steel components for the semiconductor industry.
The joint venture allows CPE Technology to use Kanekita’s advanced passivation technology to enhance its precision engineering capabilities and expand its semiconductor product offerings.
At the same time, Kanekita can leverage CPE Technology’s manufacturing facilities, production capacity and customer network to commercialise its technology and meet growing demand without expanding its own facilities.
CPE Technology believes the partnership will strengthen both companies’ competitiveness and support long-term growth through the production of high-value semiconductor components.
Under the agreement, CPE Technology and Kanekita will incorporate a joint venture (JV) company in Malaysia in the form of a private limited company, with the name yet to be finalised.
Upon incorporation, CPE Technology will hold 50.5% and Kanekita will hold the remaining 49.5%, with an initial paid-up capital of RM100 for the incorporated entity.
CPE Technology will be entitled to appoint up to two directors to the three‑member board of the joint venture company, while Kanekita will appoint one director.
The company said the agreement is not expected to have any material effect on its issued share capital, substantial shareholders' shareholdings, earnings per share, net assets per share or gearing for the financial year ending June 30, 2026.
CPE Technology posted a 33.56% decline in net profit for the third quarter ended March 31, 2026 to RM5.08 million from RM7.6 million a year earlier, due to weaker sales in its life science and medical devices division.
As at market close on Tuesday, CPE Technology shares were down one sen or 1.08%, valuing the company at RM617.6 million.