Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration

AT&S invests up to €2 billion in Malaysia plan to capitalise on AI boom

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VIENNA, June 15 : Austrian circuit board manufacturer AT&S has announced it is investing up to €2 billion ($2.3 billion) in Malaysia to capitalise on the AI boom, sending its shares soaring nearly 30 per cent.

"We will fully expand our site in Kulim," the company's CEO Michael Mertin told Reuters in an interview on Monday.

The company announced on Saturday it would expand capacity in Kulim and raised its outlook for 2026/27, citing agreements with its customer AMD, the U.S. chipmaker, and another technology company on the back of strong demand for AI infrastructure.

AT&S did not disclose the name of its second major client, while industry sources say it is Intel.

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AT&S said the investments required for additional production capacity at the existing plant and in the previously unused building at the second plant in Kulim were fully supported and financed by long-term customer commitments.

"We expect to have represented at least five of the leading high-tech clients we know as tech partners from the U.S.," said Mertin.

Shares were trading up 28.5 per cent at €199 at 1009 GMT, after hitting a record high of €200 earlier in the day.

Mertin said it was likely the company would not pay a dividend for the current and coming year.

($1 = 0.8618 euros)

(Writing by Linda Pasquini, editing by Thomas Seythal)

Source: Reuters

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