Austrian technology company AT&S has signed an agreement with AMD and another unnamed IT firm to expand the production of IC substrates for AI and high-performance computing.
The total investment for projects in Malaysia and China will range from €1.5 billion to €2 billion.
According to a press release, the main expansion will take place at the facility in Kulim, Malaysia. AT&S plans to utilize the existing factory's capacity and equip a previously unused building at the site of its second plant. Additionally, the company will increase production in Chongqing, China, to meet the needs of a key customer.
The project's financing relies on long-term commitments from clients, with final arrangements expected soon.
In light of this deal, AT&S has revised its financial forecast for 2026/27. The company now anticipates revenue growth of 45-55%, up from the previously projected 30-35%.
In the 2025/26 fiscal year, AT&S reported revenue of €1.8 billion, a 21% increase from the previous period. The company operates factories in Austria, China, Malaysia, and India, supplying components for the automotive, medical, and mobile device markets.
It’s worth noting that in June, Huawei pledged to double its AI chip production capacity each year.