Mitsui Mining & Smelting will build a new copper foil plant in Malaysia and invest ¥190 billion to meet demand from AI data centres. Production will begin in stages from 202? onward, with the plant producing two types of copper foil, Microthin and VSP.
Mitsui Mining & Smelting announced plans to build a new copper foil plant in Malaysia, stating that it would invest a total of ¥190 billion. The investment will be financed with internal funds and borrowings, and operations are scheduled to begin in stages from April 2031.
The new plant will produce two types of copper foil: the ultra-thin Microthin and VSP, which helps reduce transmission loss. Microthin is used to form fine circuits on semiconductor package substrates, and Mitsui Mining & Smelting has an almost 100% global share. VSP reduces transmission loss and is used in servers, routers and other equipment.
The demand is driven by demand for optical communications equipment for AI data centres, including optical transceivers, which convert communications between servers from electrical to optical signals. Production capacity at the new plant is planned at 12 million square metres per month for Microthin and 2,600 tonnes per month for VSP, with expansion planned in fiscal 2033.
Using the acquired land, Mitsui Mining & Smelting expects to have room to expand VSP production capacity to 3,600 tonnes per month, with the possibility of increasing it to 5,000 tonnes per month in combination with other sites depending on demand. Furukawa Electric is also taking similar steps to increase copper foil production for data centres.