Masan Expands Strategic Mineral Resources to Capitalize on AI Boom

Masan High-Tech Materials (MSR), a leading materials producer in Vietnam, has announced an expansion of its strategic mineral resource base by securing approximately 115 million tons of potential resources. Furthermore, through a partnership with GB Innovation, the company plans to increase its tungsten oxide production capacity to 8,000 tons per year by 2027. These initiatives are aimed at meeting the growing demand for strategic mineral resources driven by the rapid advancements in AI, semiconductors, and digital infrastructure. The company is developing these resources through its mining operations at the Nui Phao mine. This expansion strategy has also positively impacted MSR's business performance. In the second quarter of 2026, MSR recorded a record revenue of VND 8.138 trillion and a profit after tax before minority interests of VND 1.666 trillion. For the first half of the year, the company reported profits of VND 2.202 trillion, nearing its full-year plan target. While much attention in AI-driven technological innovation focuses on GPUs and data centers, a less-discussed materials supply chain underpins the massive investments in AI infrastructure. According to the U.S. Geological Survey (USGS), producing AI chips, operating data centers, and developing high-speed digital infrastructure requires not only silicon but also materials like tungsten, germanium, indium, and neodymium. These materials are crucial for electronic components, electrical contacts, thermal management, semiconductors, optical fibers, optoelectronic components, and high-performance magnets. Market trends corroborate this phenomenon. Over the past 12 months, the price of tungsten oxide (APT) has increased by approximately 576%, indium by 105%, germanium by 61%, and neodymium by 68%. This suggests that AI investment is not creating uniform price increases across the mining sector but is concentrating on a group of materials vital to the technology value chain. MSR's leadership stated that while AI is a significant driver, it is not the sole factor. The current tungsten market is supported by increased demand from AI infrastructure, semiconductors, and high-tech manufacturing, while global supply remains constrained. The development of new mining deposits and processing facilities requires years and a customer approval process, making short-term supply increases difficult. This dynamic ensures that the gap between demand and supply will not easily narrow, providing a foundation to support strategic mineral resource prices in the medium to long term. What the market is now focusing on is not just today's tungsten price but which companies can ensure stable supply for years to come. AI is changing how mining companies are perceived. Previously evaluated primarily by commodity price cycles, mining firms may now find their long-term competitive advantage stemming from their position in the supply chain, processing capabilities, and stable supply capacity. MSR's narrative is evolving beyond just tungsten prices to highlight its increasingly significant role in the material supply chain supporting the digital economy.