AT&S Unveils €2 Billion Kulim Expansion to Fuel AI Boom with Advanced IC Substrates and PCBs

June 20, 2026

AT&S Official Press Release オーストリア

Overview

AT&S is undertaking a monumental €1.5 billion to €2 billion expansion of its Kulim, Malaysia, manufacturing facility. Driven by long-term commitments from industry leaders like AMD, this investment directly addresses the explosive demand for advanced semiconductor packaging and IC substrates crucial for global AI infrastructure development. The multi-phase project, encompassing new construction and upgrades, is set to significantly bolster AT&S’s capacity for high-performance computing and AI applications.

In Depth

Background

The exponential growth of artificial intelligence (AI) is creating unprecedented demand for advanced data processing capabilities, making high-performance substrates and sophisticated packaging technologies indispensable in modern semiconductor design and manufacturing. Malaysia’s Kulim Hi-Tech Park, often dubbed one of the nation’s ‘Silicon Valleys,’ plays a critical role in the global semiconductor supply chain. This strategic positioning, coupled with the industry’s broader trend towards supply chain diversification, sets the stage for AT&S’s significant expansion. Long-term partnerships with leading customers like AMD are pivotal for AT&S to cement its position as a key enabler of the AI era.

Key Findings

AT&S has announced a landmark expansion plan for its Kulim manufacturing site, backed by long-term commitments from key customers including AMD and other technology leaders. This substantial investment, projected to range from €1.5 billion to €2 billion, underscores AT&S’s strategic commitment to addressing the surging demand for advanced semiconductor packaging, primarily fueled by the global build-out of AI infrastructure.

The multi-phase expansion will significantly enhance AT&S’s production capacity for complex IC substrates and advanced packaging solutions vital for high-performance computing (HPC) and AI applications. This includes bolstering the capabilities of the already operational Plant 1, undertaking significant renovation of Plant 2’s existing structures, and constructing state-of-the-art new manufacturing sites specifically for IC substrate cores and advanced Printed Circuit Boards (PCBs). High-density, reliable substrates are critical for advanced packages integrating AI accelerators and High Bandwidth Memory (HBM), and AT&S is driving technological innovation and process optimization to meet these exacting requirements.

This investment, one of Malaysia’s largest foreign direct investments, is expected to have a substantial positive impact on the regional economy. Underpinned by long-term customer contracts, the expansion is set to ensure AT&S’s competitive advantage and revenue stability. Strategically, enhanced production capabilities and technological innovations will enable AT&S to maintain its leadership in advanced IC substrates and PCBs, capture new market opportunities in the burgeoning AI and HPC sectors, and further contribute to supply chain resilience. As AI technology continues its rapid evolution, the demand for increasingly complex and higher-performance substrate and packaging solutions will only intensify, solidifying AT&S’s critical role in the future of computing.

Source: https://ats.net/en/press/ats-expands-kulim-site-to-support-long-term-customer-demand-and-deepen-strategic-technology-partnerships/

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