AT&S Secures AMD Deal, Plans €2B Investment to Boost AI Chip Substrate Production in Malaysia and China
June 15, 2026
AT&S Secures AMD Deal, Plans €2B Investment to Boost AI Chip Substrate Production in Malaysia and China
Austria Technologie & Systemtechnik Aktiengesellschaft (AT&S), a leading global manufacturer of high-end IC substrates and printed circuit boards, has announced a major expansion of its production capacity for advanced chip substrates used in artificial intelligence (AI) and high-performance computing. The move, backed by agreements with AMD and another unnamed leading technology company, underscores the surging demand for sophisticated packaging solutions that underpin next-generation data centers and AI workloads.
In a statement released last Saturday, the Austrian chipmaker said it will invest between €1.5 billion and €2.0 billion ($1.74 billion to $2.32 billion) to expand its facilities in Kulim, Malaysia, and Chongqing, China. The Malaysia expansion will add new production lines at the existing Kulim plant and also utilize a previously unused building at the site’s second facility. Meanwhile, the Chongqing plant will see capacity enhancements to meet growing requirements from a key customer, further cementing AT&S’s role in the global semiconductor supply chain.
The investment comes on the heels of a record-breaking fiscal year 2025/26 for AT&S, during which the company reported consolidated revenue of €1.8 billion—a 21 percent increase adjusted for currency effects, surpassing its previous record set in 2022/23. EBITDA improved by approximately 50 percent to €418 million, with the EBITDA margin rising more than 5 percentage points to 23.3 percent. Buoyed by these agreements, AT&S has raised its outlook for fiscal year 2026/27, now forecasting currency-adjusted revenue growth of 45 to 55 percent, up from a prior estimate of 30 to 35 percent. The company also expects an EBITDA margin of 32 to 37 percent, compared to an earlier forecast of 25 to 29 percent. Capital expenditure for the period is projected to reach between €1.0 billion and €1.2 billion, significantly higher than the previous estimate of €400 million.
The expansion highlights the critical role of IC substrates in enabling the performance and efficiency of AI accelerators and high-performance computing systems. As demand for AI chips continues to grow, manufacturers like AT&S are investing heavily to address supply chain bottlenecks and ensure adequate capacity for advanced packaging technologies. With production sites in Austria, China, Malaysia, and India, AT&S serves key digital industries including mobile devices, automotive, industrial, medical, and high-performance computing for AI applications. This latest move positions the company to capture a larger share of the booming AI infrastructure market, while also reinforcing the strategic importance of Southeast Asia and China in the global semiconductor ecosystem.
Source: technode
