AT&S - Wachstumsweg zu 80 Euro

Leading circuits board  maker AT&S has announced a RM8.5 billion investment for a plant in  Malaysia, in a major boost to the economy as the country seeks to  recover from the impact of the Covid-19 pandemic.

The Austrian-based giant which has factories in India, China and  South Korea, is a global leader in high-end printed circuit boards and  integrated circuit substrates, as well as a major parts supplier to  global computer brands including Apple.

Despite the pandemic, AT&S recorded a double-digit increase in  revenue and earnings for the 2020/21 period, with a record revenue of  €1.19 billion, up 19% from the year before.

The plant at the Kulim Hi-Tech Park in Kedah will mark its debut in  the Southeast Asian region, and is expected to create 5,000 high-tech  and high-impact jobs once operations begin in 2024.

“No doubt, AT&S’ latest investment is a testament to the  confidence of foreign investors in Malaysia’s economic prospects as well  as the human capital resource available to cope with the high-tech  demands of high-impact industries,” International Trade and Industry  Minister Mohamed Azmin Ali said in a statement welcoming the company’s  decision.

The decision was officially conveyed by AT&S CEO Andreas  Gerstenmayer to Prime Minister Muhyiddin Yassin during a video  conference yesterday.

Gerstenmayer said AT&S had been involved in “very intensive  location scouting globally”, adding that Malaysia was chosen to push  ahead its “More than AT&S” initiative.

“Beside the manufacturing of high-tech products, a significant number  of R&D 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,” he said.

AT&S chief operating officer Ingolf Schröder meanwhile described  the Kulim Hi-Tech Park as the “perfect match” for its expansion plans.

This comes on the back of the latest figures revealed by the  Malaysian Investment Development Authority (Mida) that the country  recorded RM80.6 billion in approved investments in the manufacturing,  services and primary sectors in the first quarter of this year, a 95.6%  spike from RM41.2 billion in the same period last year.

Azmin said the AT&S project was the result of Mida’s engagements  with the company since last November, as part of efforts under the  Penjana scheme, or the National Short-Term Economic Recovery Plan,  launched to restart the economy following the nationwide lockdown in  2020.

AT&S’ high-end circuit boards are used in mobile devices,  industrial electronics, automotive applications as well as medical and  health technology.

Meanwhile, Muhyiddin commended the international trade and industry  ministry as well as Mida for their work in attracting investors.

“This investment announcement represents a key win for Malaysia in  proving our efforts to source for high-quality investments from  international companies.”