AT&S, the Austrian producer of printed circuit boards, unveiled plans to invest up to €2 billion (about $2.3 billion) in Malaysia to scale production for rising demand associated with AI infrastructure.
The company said the funds will be directed at expanding capacity at its existing Kulim facility and bringing a previously unused building at a second plant in the same Kulim complex into operation. AT&S stated the investment will be fully underpinned and financed through long-term customer commitments.
News of the expansion had an immediate market impact. AT&S shares climbed 28.5 percent, trading at €199 by 1009 GMT on Monday after hitting an intraday record of €200 earlier in the session.
The capital expenditure decision comes after AT&S reached agreements with U.S. chipmaker AMD and another technology customer that the company did not name. Industry sources indicated that the unnamed partner is Intel.
"We will fully expand our site in Kulim," CEO Michael Mertin said on Monday. He also said the company expects to count at least five leading U.S. high-tech firms among its technology partners as it scales capacity.
On Saturday the company raised its outlook for the 2026/27 fiscal year, citing strong demand for AI infrastructure as the driver. At the same time, Mertin indicated AT&S will likely forgo dividend payments for the current and next year.
Context and implications
The planned investment targets manufacturing capacity increases in Malaysia rather than the establishment of new geographically separate plants. By activating existing real estate in Kulim and enlarging production at an established site, AT&S is positioning itself to meet orders linked to AI-related hardware needs. The firm emphasizes that its expansion will be financed through customer-backed commitments, which shifts the financing risk onto contractual demand rather than solely on balance-sheet financing.
Market reaction
Investors responded decisively to the announcement and to the upgraded outlook for 2026/27, sending the stock to record levels intraday and producing a near 30 percent one-day gain by the time quoted prices were reported.
Operational partners
AT&S explicitly named AMD as a recent partner and withheld the identity of a second technology client; industry sources pointed to Intel. The company expects to secure relationships with at least five leading U.S. high-tech companies as it expands capacity.
Capital allocation note
Management signaled that dividend distributions will likely be suspended for the current and following year as resources are prioritized for the expansion and execution of customer-backed projects.