Austria’s AT&S to invest RM8.5b to set up plant in Malaysia
11 Jun 2021
AT&S’ new facility in Kulim Hi-Tech Park, Kedah, will produce high-end printed circuit boards and integrated circuit substrates
Austria-based AT&S has chosen Malaysia for its first production facility in the region as the global manufacturing leader of high-end printed circuit boards (PCBs) and integrated circuit (IC) substrates expands into the region.
In a statement yesterday, International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali (picture) said AT&S’ new facility in Kulim Hi-Tech Park, Kedah, will produce high-end PCBs and IC substrates following a proposed investment of RM8.5 billion.
He added that AT&S CEO Andreas Gerstenmayer has met Prime Minister (PM) Tan Sri Muhyiddin Yassin during a video conference to convey the official announcement.
The new facility would create 5,000 high-tech and high impact jobs. The construction of the facility is scheduled to begin in the second half of 2021 with commercial operations targeted to come on stream in 2024.
This project is among the investments attracted by the Malaysian Investment Development Authority under the National Short-term Economic Recovery Plan’s investment scheme, launched on June 5, 2020.
AT&S’ high-end PCBs and IC substrates are used in mobile devices, industrial electronics, automotive applications, as well as medical and health technology.
As an international enterprise, the company has production facilities in Austria, India, China and South Korea.
“At the meeting, I expressed optimism the investment also holds out bright prospects for our local small and medium enterprises to benefit from the supply chain generated,” said Azmin.
The PM is confident Malaysia’s electrical and electronics industry’s skilled talent pool, facilitative investment environment, as well as deep integration with international supply chains offer the ideal mix for high-tech stakeholders.
“Working hand in hand, AT&S’ footprint in Malaysia will also further boost the development of our semiconductor ecosystem, enable opportunities for local vendors in the field of advanced electronics and spur high-tech employment for Malaysians,” the PM added.
Gerstenmayer said AT&S brings the latest generation of high-end technologies to the country and hopes to build up a whole new technology sector.
“Beside manufacturing of high-tech products, a significant amount of research and development activities will be executed at this new location. Malaysia can benefit from its position as a technology country and can strengthen the region as a high-tech manufacturing hub in Asia,” Gerstenmayer added.
AT&S’ latest investment is a testament to its confidence in Malaysia’s economic prospects and the human capital resource available to cope with the high-tech demands of high-impact industries.
“Coupled with the strong showing of investment approvals for the first quarter of this year totalling RM80.6 billion in the manufacturing, services and primary sectors, AT&S’ investment bodes well for Malaysia’s recovery efforts from the economic challenges of the Covid-19 pandemic,” said Azmin.
Source: The Malaysian Reserve
