AT&S Bolsters AI Investment with Major Malaysian Expansion
Austrian circuit board producer AT&S is making a substantial investment of up to €2 billion in Malaysia, aiming to capitalize on the rapidly expanding artificial intelligence market. This strategic financial commitment, revealed on Monday, June 15, 2026, has led to an impressive nearly 30% increase in the company's stock value. The expansion will primarily focus on its facility in Kulim, driven by robust demand for AI infrastructure and strong partnerships with leading technology firms such as AMD, and another undisclosed company, reportedly Intel. This move underscores AT&S's ambition to solidify its position as a key supplier in the high-tech industry, particularly in the burgeoning AI domain.
The company's CEO, Michael Mertin, confirmed that the Kulim site will undergo a full-scale expansion. This decision follows AT&S's announcement on Saturday regarding increased production capacity in Kulim and an upward revision of its outlook for the 2026/27 fiscal year. The enhanced capacity is a direct response to agreements with major clients, including the US chipmaker AMD, and another significant technology partner. While the second client's identity remains officially unconfirmed, industry speculation points to Intel.
AT&S has clarified that the extensive investments required for this expansion, encompassing both the existing plant and a previously unused building at its second Kulim facility, are fully supported and financed through long-term commitments from these crucial customers. Mertin emphasized the company's expectation to serve at least five of the leading US-based high-tech clients, who are also considered technological collaborators.
Following the investment announcement, AT&S shares experienced a significant surge, trading up by 28.5% at €199 by 1009 GMT, after briefly reaching a record high of €200 earlier in the day. Despite this positive market reaction, Mertin indicated that the company is unlikely to distribute a dividend for the current and upcoming fiscal years, prioritizing reinvestment into growth and capacity development.
In summary, AT&S's substantial investment in Malaysia reflects its proactive strategy to meet the burgeoning demands of the artificial intelligence sector. By expanding its Kulim operations with the backing of key industry players like AMD and potentially Intel, the company is positioning itself for significant growth and a leading role in the global high-tech supply chain, even as it foregoes short-term dividends for long-term strategic gains.
