Austrian circuit board manufacturer AT&S announced it will invest up to €2 billion (about US$2.3 billion or RM9.3-9.4 billion) to expand its manufacturing site in Kulim, Kedah, Malaysia [1, 2, 3, 4, 5, 6]. The expansion will utilize existing plant capacity and previously unused building space at a second plant in Kulim [1, 3, 6].
The move is driven by strong demand for AI infrastructure, high-end circuit boards, and semiconductor-related products, according to AT&S and industry sources [1, 4, 6]. AT&S has agreements with AMD and another major U.S. technology company—believed to be Intel—as customers supporting the expansion [1, 4, 6]. The company expects to have at least five leading high-tech U.S. customers as technology partners in the expanded operations [1, 4, 6].
AT&S CEO Michael Mertin said, "We will fully expand our site in Kulim" and indicated the company may suspend dividends for the current and coming years to fund growth [1, 6]. He stated that "our technological leadership, strong partnerships with global players in the semiconductor industry and proven ability to scale advanced manufacturing facilities position us as the partner of choice for the next wave of growth" [5].
The investment and capacity expansion are fully supported and financed by long-term customer commitments, with AT&S CFO Gerrit Steen adding, "We are structuring these agreements to support long-term growth, while maintaining financial discipline. At the same time, they support our objective of further strengthening our balance sheet and financial flexibility" [1, 2, 5].
Following the announcement on June 13, AT&S shares surged 28.5% to 36.2%, reaching record highs between €199 and €210 [1, 6].
Malaysian Prime Minister Datuk Seri Anwar Ibrahim praised the investment on June 16, calling it a sign of growing international investor confidence in Malaysia. He said, "Meetings and discussions held in early June have borne fruit, with AT&S announcing its intention to expand its operations in Kulim, Kedah, further reinforcing Malaysia’s position as a destination for high-impact technology investments" [2]. Anwar also noted the expansion would strengthen Malaysia's semiconductor ecosystem and create high-skilled job opportunities [2, 3, 5].
AT&S will proceed with full expansion of the Kulim site supported by long-term contracts. The company is likely to forego dividends during this period as it focuses on scaling production to meet strong AI-related demand [1, 6].
