Inari Amertron Berhad: Strategic Expansion and Market Dynamics

In a significant move that underscores its strategic ambitions, Inari Amertron Berhad, a leading Malaysian company specializing in electronic components and assemblies, has joined forces with China’s San’an Optoelectronics Co Ltd to acquire Lumileds International. This acquisition, valued at US$239 million (RM1.03 billion), marks a pivotal expansion into the global light-emitting diode (LED) market. The transaction, executed entirely in cash through a special purpose vehicle based in Hong Kong, sees San’an holding a 74.5% stake and Inari 25.5%.

This acquisition is not just a business expansion but a strategic alignment with the evolving LED industry. As Steve Barlow, CEO of Lumileds International, noted, “This transaction is the next step of our ongoing transformation. As the LED industry evolves and continues to mature, I am confident that Lumileds International will continue to be successful and accelerate its growth under the new ownership.”

Market Implications and Financial Outlook

The acquisition comes at a time when Inari Amertron Berhad is navigating a dynamic market environment. As of July 30, 2025, the company’s share price stood at MYR 2.11, with a 52-week high of MYR 3.82 and a low of MYR 1.42. The company boasts a market capitalization of MYR 7,994,750,000 and a price-to-earnings ratio of 35.65. This strategic move is expected to bolster Inari’s market position and potentially enhance its financial metrics by tapping into the lucrative LED market.

Tariff Reductions and Sectoral Boost

In parallel, the Malaysian technology sector is poised for a rebound, buoyed by recent policy boosts and a significant reduction in US tariffs on Malaysian exports. The US has agreed to lower tariffs on Malaysian goods from 25% to 19%, a development that is expected to invigorate the electronics manufacturing services (EMS) sector. This tariff reduction is a testament to Malaysia’s strategic role in the global supply chain, particularly in the semiconductor industry, where it accounts for approximately 19.8% of US imports.

Strategic Positioning and Future Outlook

Inari Amertron Berhad’s acquisition of Lumileds International is a testament to its commitment to innovation and excellence. By expanding its footprint in the LED market, Inari is not only diversifying its product offerings but also positioning itself as a key player in the global supply chain. This move aligns with Malaysia’s broader economic strategy under the 13th Malaysia Plan, which aims to transform the country into a regional hub for digital technology manufacturing and an inclusive AI nation by 2030.

As the LED industry continues to mature, Inari’s strategic acquisition is expected to drive growth and innovation, reinforcing its market leadership in electronic components and assemblies. With supportive policies and a favorable market environment, Inari Amertron Berhad is well-positioned to capitalize on emerging opportunities and deliver sustained value to its stakeholders.