KUALA LUMPUR (Nov 11): Japanese metal materials producer Mitsui Kinzoku is investing 190 billion yen (RM4.87 billlion)  to construct a new copper foil plant in Malaysia, as it looks to ensure a stable supply amid rapid growth in the artificial intelligence (AI) and semiconductor markets.

The investment covers land acquisition for 14 billion yen, buildings for 32 billion yen, and production equipment for 144 billion yen, Nikkei Asia reported on Wednesday, citing the company.

Copper foil, a key material for optical communications devices in AI data centres, is seeing growing demand for optical transceivers that convert between electrical and optical signals.

The new plant, which will be built on land near the company's existing domestic facility, is slated to begin operating in stages from April 2031.

The new plant will add 400 units of MicroThinTM capacity of about 10,000 sqm/month and 1,200 tons/month of VSPTM capacity over three years, with operations commencing in phases from April 2031.

VSPTM is a type of electrolytic copper foil specifically designed for high-frequency circuit boards.

Mitsui Kinzoku operates in Malaysia primarily through its subsidiary Mitsui Copper Foil (Malaysia) Sdn Bhd, which manufactures high-precision copper foil for electronics, semiconductors, and AI data centres.