KULIM : Austrian technology firm AT&S has confirmed that its operations in Malaysia remain unaffected by the recent imposition of reciprocal tariffs by the United States, as its product range is not covered by the current trade restrictions.
According to Ingolf Schroeder, Executive Vice-President of AT&S’s Microelectronics Business Unit, the company is closely monitoring global developments, but no impact has been observed at its Malaysian facility to date.
“Our high-end printed circuit boards and integrated circuit (IC) substrates, which are essential components in semiconductors, smartphones, industrial electronics, automotive systems, medical devices and AI hardware, are currently shipped exclusively to outsourced semiconductor assembly and test (OSAT) firms in Taiwan and Malaysia,”
Schroeder said during a briefing at the company’s manufacturing site in the Kulim Hi-Tech Park.
The Malaysian operations form a key part of AT&S’s global supply chain, which supports major clients including US chipmaker Advanced Micro Devices Inc (AMD). The company has committed over RM5 billion to its Kulim facility under Phase 1 of its development plan, which totals RM8.5 billion. This includes an allocation of RM600 million for research and development.
Production at the Kulim plant began in March with the large-scale manufacturing of high-end IC substrates, developed primarily for AMD’s high-performance, energy-efficient data centre processors.
Looking ahead, Schroeder said the Kulim site will play a central role in AT&S’s long-term growth strategy, as the company aims to become one of the top three IC substrate producers globally.
“Our operations here began with just one customer, AMD, but we are targeting an expansion of our client base to three customers by financial year 2026, and up to five by the following year. These could include other chip designers or OSAT companies,”
he said.
He added that the company remains focused on supporting the next generation of artificial intelligence technologies, and expressed confidence in continued demand for high-end substrates.
“If AI is indeed the next major growth driver, we do not foresee a downturn. The products we make are highly advanced and very few companies globally can match this level of complexity.”
Schroeder also noted efforts to improve supply chain localisation in Malaysia, particularly in sourcing critical raw materials such as chemicals. While many inputs are still imported, AT&S is actively working to expand its local supplier base to enhance operational flexibility.
-Free Malaysia Today
