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

By Alexandra Schwarz-Goerlich

VIENNA, ‌June 15 (Reuters) - ​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%.

"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.

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% 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)

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