Frontken’s Taiwan buy gives room for expansion

By the Editorial Team · Friday, September 18, 2026

Frontken Corp Bhd’s Taiwan unit, AGTC, has purchased industrial land and factory buildings in Tainan Xinying Industrial Zone for NT$920 million to increase capacity amid growing demand from a major foundry client. This strategic move secures immediate operational space within an established cluster and supports Frontken’s strong financial position and growth forecast through FY28.

Frontken Corp Bhd’s Taiwan subsidiary, AGTC, has acquired industrial land and factory premises in the Tainan Xinying Industrial Zone, positioning the semiconductor services provider for capacity expansion amid growth expected from a major foundry client. The acquisition, valued at 920 million Taiwanese dollars (approximately RM118.2 million), is located roughly 950 metres from AGTC’s existing P1 facility within the same industrial cluster.

The purchase includes not only the land but also seven factory buildings and an installed solar photovoltaic system, offering Frontken immediate operational capacity. Industry analysts describe the deal as a “capacity-enabling investment” made ahead of anticipated demand increases, securing space in an established production hub.

According to Apex Research, the acquisition price exceeded recent land transactions in the area by 12.5% to 16.1%, a premium they deemed “full but reasonable.” They highlighted Frontken’s robust financial position as a key factor supporting the transaction. With RM386 million in cash and bank balances and RM181.5 million in fixed deposits as of fiscal year 2026 (FY26), the group has total liquidity of RM567.4 million and near-zero borrowings. Consequently, the company is projected to maintain a net cash status through FY26 to FY28 even after this investment.

Apex Research maintained its net profit forecasts for Frontken at RM197.3 million for FY26, RM206.8 million for FY27, and RM217.4 million for FY28 without any modifications following the acquisition. The research firm also kept its “buy” rating on Frontken shares, retaining a target price of RM5.86 per share. This target is based on a price-to-earnings ratio of 46.2 times applied to the expected core earnings per share of 12.7 sen in FY27.

The acquisition reflects Frontken’s strategic focus on expanding its semiconductor services footprint in Taiwan, a key market supporting its growth trajectory linked to foundry operations.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.