Chipmaker Austria Technologie & Systemtechnik Aktiengesellschaft (AT&S) will expand production capacity for high-end IC substrates for artificial intelligence (AI) and high-performance computing, with investments spanning its Kulim facility in Malaysia and its Chongqing plant in China, totaling €1.5-2.0 billion ($1.74-2.32 billion).

In a statement last Saturday, the Austrian giant said it reached agreements with AMD and another unnamed leading technology company for the move.

The Malaysia expansion will install additional production capacity at the existing Kulim plant and in a previously unused building at the site’s second plant. Besides, AT&S will enlarge expand capacity at its Chongqing facility to meet growing demand from a key customer.

Based on the agreements, AT&S has raised its outlook for fiscal year 2026/27, now expecting currency-adjusted revenue growth of 45 to 55 percent, up from a previous forecast of 30 to 35 percent, and an EBITDA margin of 32 to 37 percent, up from 25 to 29 percent. Capital expenditure is expected to reach between €1.0 billion and €1.2 billion, compared to a previous estimate of €400 million.

The expansion announcements follow a strong financial year 2025/26, in which AT&S reported consolidated revenue of €1.8 billion, up 21 percent adjusted for currency effects and surpassing its previous record set in 2022/23. EBITDA improved by approximately 50 percent to €418 million, with the EBITDA margin rising more than 5 percentage points to 23.3 percent.

AT&S is a leading global manufacturer of high-end IC substrates and printed circuit boards, with production sites in Austria, China, Malaysia, and India, serving key digital industries including mobile devices, automotive, industrial, medical, and high-performance computing for AI applications.

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