AT&S Initiates High-Volume AI Substrate Production in Malaysia, Backed by Major Customer Commitments and Projecting Substantial Revenue Growth

July 12, 2026

boerse-social.com Austria

Overview

AT&S, a leading Austrian manufacturer of high-end IC substrates, has commenced high-volume production of advanced AI substrates at its new Kulim, Malaysia, facility. This expansion, supported by long-term customer commitments from major technology firms like AMD, is part of a 2 billion euro investment to boost capacity across Malaysia and China. Consequently, AT&S has raised its revenue growth forecast for fiscal year 2026/27 to an impressive 45-55%, driven by the surging demand from the AI and high-performance computing markets.

In Depth

Background

The AI revolution has unleashed unprecedented demand and innovation in the semiconductor industry, with IC substrates serving as vital components that dictate overall chip performance. As AI chip designs increasingly shift towards chiplet-based heterogeneous integration, high-performance substrates are enhancing their role as fundamental ‘infrastructure’ for efficiently connecting multiple dies, managing thermal dissipation, and delivering power. Even in advanced packaging technologies like TSMC’s CoWoS, the ultimate performance is heavily reliant on the quality of the underlying substrate. AT&S’s investment in its Malaysian facility unequivocally demonstrates the rapidly accelerating demand for advanced materials and packaging technologies, especially as Asia continues to be a pivotal manufacturing hub in the global semiconductor supply chain. The secured customer commitments underscore both the severity of supply bottlenecks in the AI market and the concentration of demand on key suppliers.

Key Findings

AT&S has officially commenced high-volume production of high-end IC substrates for AI and High-Performance Computing (HPC) at its state-of-the-art new plant in Kulim, Malaysia. This pivotal achievement is supported by robust, long-term customer commitments from leading technology companies, including AMD. The Austrian firm is strategically investing up to 2 billion euros (approximately $2.1 billion) to significantly expand its substrate production capabilities across Malaysia and China. Based on these secured agreements, AT&S has substantially upgraded its currency-adjusted revenue growth forecast for fiscal year 2026/27 to an impressive 45–55%, signaling a direct and strong positive impact from the burgeoning AI market.

Technical Details

The IC substrates produced at AT&S’s Kulim facility are engineered to meet the extremely stringent technical requirements of AI accelerators and HPC chips. These substrates feature complex multi-layer structures and ultra-fine line patterns, meticulously designed to support advanced chiplet technologies and 2.5D/3D packaging architectures. The high-density wiring layers are crucial for enabling high-speed data communication between CPUs, GPUs, and High-Bandwidth Memory (HBM), facilitating the massive data processing capabilities indispensable for AI workloads. The company’s investment encompasses the integration of cutting-edge manufacturing equipment and cleanroom technologies, establishing a high-yield production system that addresses the supply stability and quality standards demanded by the AI market. Collaboration between AT&S’s European R&D centers and its Asian production sites ensures the application of innovative materials and process technologies in substrate manufacturing.

Strategic Significance & Outlook

The initiation of high-volume production at AT&S’s new Kulim plant, coupled with a significant upward revision of its financial outlook, solidifies the company’s strategic position in the AI market. Securing long-term customer contracts guarantees future revenue stability and growth, ensuring that AT&S directly benefits from the expansion of the AI hardware market. Over the coming years, demand for AI accelerators is projected to continue its robust growth, and AT&S is poised to ride this wave as a leading supplier of advanced IC substrates. The company’s investments also contribute to the geographic balance of the global semiconductor supply chain, with strengthened production capabilities in Asia becoming key to supporting the development of global AI infrastructure. Through continuous technological innovation and production capacity expansion, AT&S is expected to play a crucial role in pushing the boundaries of semiconductor performance in the AI era.

Source: https://www.boerse-social.com/page/newsflow/wie_ats_erste_group_porr_voestalpine_sbo_und_strabag_fur_gesprachsstoff_im_atx_sorgten

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