KUALA LUMPUR: Malayan Pacific Industries Bhd (MPI) is set to benefit from Infineon Technologies AG’s accelerated push into artificial intelligence (AI) power electronics, said CIMB Securities Sdn Bhd.
The research house said Infineon’s financial year 2025 (FY25) performance and its guidance for FY26 underscore a strong structural uptrend in global demand for AI-driven power solutions.
“This will directly support MPI’s prospects as part of Infineon’s advanced packaging supply chain,” it said in a note.
Infineon has revised its FY26 forecast for AI power revenue to €1.5 billion, up from its previous target of €1 billion.
This is driven by higher power requirements from next-generation processors and content value gain.
CIMB Securities noted that development is positive for MPI, which plans to begin mass production of its new high-power Cu-clip packages for Infineon from the second quarter (Q2) of calendar year 2026.
The firm estimates these new programmes could raise MPI’s AI-related revenue contribution from eight to nine per cent in FY25 to around 15 per cent by FY27.
“We also understand that MPI serves as one of Infineon’s key outsourced semiconductor assembly and test partners for high-power discrete and power module packaging for both AI and general-purpose server racks.
“This will leverage MPI’s established strengths in high-thermal, high-power packaging technologies,” it said.
In addition, CIMB Securities projects MPI to deliver a robust three-year core net profit compound annual growth rate of 24 per cent.
The firm said this will be supported by stronger industrial segment contribution and earnings uplift from the Infineon Thailand acquisition, which should begin contributing in the third quarter of next year onwards.
“We maintain our earnings forecast and reiterate our ‘buy’ rating with a higher target price of RM41 from RM35, previously,” it added.
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