Malaysian Pacific Industries Bhd is set to benefit from rising demand for advanced power semiconductor packaging. The driver is German chipmaker Infineon Technologies AG, whose AI business is growing fast. For MPI shareholders, the key question is whether that demand reaches the Carsem plant in Ipoh.
Why Is Malaysian Pacific Industries Tied to Infineon’s AI Growth?
Infineon’s AI data centre power revenue more than doubled to over €1.7 billion in FY26, from €700 million a year earlier. That beat the company’s earlier guidance of €1.5 billion.
Growth came from accelerating AI infrastructure investment, production capacity expansion and higher power semiconductor content per AI server. Infineon expects combined AI and conventional data centre power revenue to reach nearly €4 billion in FY27.
CIMB Securities says multi-year supply and capacity reservation arrangements, both signed and under negotiation, could underpin more than €10 billion in potential cumulative revenue.
‘We believe Infineon’s strong growth trajectory is a positive read-through for MPI, which is well-positioned to benefit from rising demand for advanced power semiconductor packaging,’ CIMB Securities said in a research note.
How Much Has MPI Invested in AI Packaging?
CIMB Securities says MPI invested about US$65 million in its financial year ended 2026 (FY26) to expand AI server-related packaging capabilities.
The spending also raised production capacity for new power modules at its Carsem facility in Ipoh.
What AI Revenue Share Is CIMB Forecasting for MPI?
- FY26: 13% AI-related revenue contribution
- FY27: 18%
- FY28: 23%
CIMB Securities expects MPI to ramp up production of new vertical power delivery-enabled modules in FY27, adding another growth avenue through higher packaging content value.
Over the medium term, CIMB expects 800 volt data centre server-rack architectures to accelerate demand for wide-bandgap power solutions, particularly silicon carbide and gallium nitride. That creates further opportunities for MPI to capture higher packaging content per AI server.
Why Did HLIB Cut Its MPI Target to RM48.50?
HLIB maintained its ‘Buy’ call on MPI but lowered its target price to RM48.50 from its previous valuation.
The revised target uses a price-to-earnings multiple of 29 times, down from 37 times previously, and rolls the valuation forward to end in 2027.
CIMB Securities said the lower valuation reflected weaker global technology sentiment amid inflationary pressures and concerns over a potential slowdown in AI infrastructure investment.
Key Takeaways
- CIMB Securities forecasts MPI’s AI-related revenue share rising from 13% in FY26 to 23% in FY28.
- MPI invested about US$65 million in FY26 to expand AI packaging and power module capacity at Carsem, Ipoh.
- HLIB keeps its ‘Buy’ call with a RM48.50 target, based on 29 times price-to-earnings.
- Infineon’s potential cumulative revenue above €10 billion depends on arrangements that are signed or still under negotiation.
For readers tracking AI supply-chain names, our AI Stock Analysis for Malaysians guide is a useful starting point.
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Disclaimer: This article is for general information only and is not investment advice or a recommendation to trade any security. The source article does not include MPI’s current share price, so check the live quote on Bursa Malaysia and do your own research before making any decision.
Frequently Asked Questions
What is Malaysian Pacific Industries’ target price?
HLIB maintained its ‘Buy’ call on MPI and cut its target price to RM48.50. The revised target uses 29 times price-to-earnings, down from 37 times, with valuation rolled forward to end in 2027.
How much did MPI invest in AI packaging?
CIMB Securities says MPI invested about US$65 million in FY26 to expand AI server-related packaging capabilities. The spending also went toward new power module capacity at its Carsem facility in Ipoh.
What share of MPI revenue could be AI-related by FY28?
CIMB Securities forecasts AI-related revenue contribution rising from 13% in FY26 to 18% in FY27 and 23% in FY28. The growth is linked to new power modules and higher packaging content per AI server.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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