AT&S Invests €2 Billion in AI Chip Production with AMD

AT&S, an Austrian tech firm, has partnered with AMD and another IT company to enhance the production of integrated circuit (IC) substrates aimed at artificial intelligence and high-performance computing.

The investment, estimated between €1.5 billion and €2 billion, will focus on projects in Malaysia and China, with the primary expansion occurring at AT&S's Kulim facility in Malaysia. The company intends to maximize the existing factory's capabilities and upgrade an unused building at its second plant. Furthermore, production will be ramped up in Chongqing, China, to satisfy a major customer’s requirements.

Financing for this initiative is contingent upon long-term commitments from clients, with final agreements anticipated shortly.

This development has prompted AT&S to adjust its financial outlook for the 2026/27 fiscal year, now projecting revenue growth between 45% and 55%, a significant increase from the earlier estimate of 30% to 35%.

In the previous fiscal year 2025/26, AT&S achieved revenue of €1.8 billion, marking a 21% rise compared to the prior year. The company operates production facilities across Austria, China, Malaysia, and India, supplying components for various sectors including automotive, medical, and mobile devices.

Notably, in June, Huawei announced plans to double its AI chip production capacity annually.