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Unaffected by US tariffs, Austrian tech giant ramps up AI product output
Unaffected by US tariffs, Austrian tech giant ramps up AI product output

Free Malaysia Today

time08-05-2025

  • Automotive
  • Free Malaysia Today

Unaffected by US tariffs, Austrian tech giant ramps up AI product output

AT&S microelectronics business unit executive vice-president Ingolf Schroeder said the firm's Kulim plant will be a main contributor to its growth. (Bernama pic) KULIM : Austrian tech giant AT&S says its operations in Malaysia are unaffected by the US's 'reciprocal' tariffs, as its products do not fall under Washington's targeted trade restrictions. Ingolf Schroeder, executive vice-president of AT&S's microelectronics business unit, said the company was monitoring the situation closely but that its facility in Malaysia had not been impacted so far. He said its high-end printed circuits boards and integrated circuits (IC) substrates – critical components used in semiconductors, smartphones, industrial electronics, automotive systems, medical devices, and artificial intelligence hardware – were shipped only to outsourced semiconductor assembly and test companies in Taiwan and Malaysia. 'We will continue to ramp up production at our plants in Austria and China as well,' he told reporters at AT&S's Malaysian plant in the Kulim Hi-Tech Park. AT&S, which operates in Austria, India, China, and Malaysia, is part of the broader supply chain serving US chip giant Advanced Micro Devices Inc, or AMD. The firm has invested over RM5 billion in its Malaysian site as part of a broader RM8.5 billion Phase 1 development plan involving two production sites, including RM600 million for research and development. AT&S chose Malaysia in 2021 as the site for its first Southeast Asia facility. In March, AT&S's Kulim facility started the high-volume manufacturing of high-end IC substrates. The serial production of AT&S's cutting-edge IC substrates caters almost exclusively to AMD, particularly for incorporation into high-performance and energy-efficient data centre processors. Schroeder said the Kulim plant would be a main contributor to the company's growth, helping the Austrian firm achieve its ambition of becoming one of the world's top three IC substrate suppliers in the coming years. 'Our Kulim operations started with only one customer, AMD, but we hope to expand our clientele base to three customers by the financial year of 2026, and then five customers the following year. 'These new potential customers could be chip designers or outsourced semiconductor assembly and test companies,' he said, adding that AT&S was focused on long-term growth, especially in producing next-generation AI hardware. 'If you believe AI will be the driving force, there will not be a downturn. The products we manufacture here are top-tier, robust and resilient. There is competition, but very few can produce these next-gen products because of their complexity.' Schroeder said the company was also adapting its supply chain strategy to support its Malaysian operations, with a push to grow local content. Currently, many raw materials are sourced from outside Malaysia, but he said AT&S was working to localise suppliers, especially for critical chemicals to strengthen its operational flexibility.

AT&S Kulim plant receives AMD's high-volume manufacturer certification
AT&S Kulim plant receives AMD's high-volume manufacturer certification

New Straits Times

time07-05-2025

  • Business
  • New Straits Times

AT&S Kulim plant receives AMD's high-volume manufacturer certification

KULIM: Austrian chipboard manufacturer AT&S's RM5 billion facility at the Kulim Hi-Tech Park (KHTP) is ready to commence high-end Integrated Circuit (IC) substrate production to support AMD's high-performance processors, among other clients. The world's fifth-largest modern IC substrate producer said the launch of its Kulim Campus will accelerate its ambition to become one of the top three global players in the industry. "This is likely a new world record. Commencing high-volume production is not only a major milestone for AT&S but also a significant step forward for Malaysia. "By introducing high-end IC substrate technology to Kulim, we aim to contribute to Malaysia's economic and technological development sustainably," said AT&S's Microelectronics Business Unit executive vice president Ingolf Schroeder. He added that AT&S's substrate production for AMD at the Kulim Campus is expected to grow steadily in response to increasing demand for Computer Processing Units (CPUs) and Graphics Processing Units (GPUs), particularly in the fields of data centres, Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR). "With the expected exponential growth in data volume, the demand for data storage, transmission, and analysis continues to surge. "AT&S is a sought-after technology partner, and we anticipate significant growth in our customer base at the Kulim plant, with more high-profile clients expected to come on board during this financial year," he said at a press conference to announce the Kulim plant's High Volume Manufacturing accreditation from AMD today. Schroeder said AT&S is benefiting from a strategically integrated "substrate triangle", consisting of its facilities in Chongqing (China), Kulim (Malaysia), and Leoben (Austria). "Expertise, technologies, and research are constantly being shared and refined across these three sites, enabling each plant to reach its full potential," he said. He emphasised that AT&S is not directly affected by the reciprocal tariffs imposed by the United States. "Firstly, we are not – and not only in Malaysia – impacted by the tariffs, as we do not supply final products. We are unaffected by any such tariffs. Our operations in Kulim are ongoing and expanding, as are those in Austria and China," he explained. AT&S Malaysia has invested RM600 million in research and development (R&D), equipping the 255,000 square metre plant with 500 high-tech machines. "We are employing around 1,500 local workers and have invested RM600 million in R&D. "AT&S collaborates closely with CREST (Collaborative Research in Engineering, Science & Technology) and the Investment, Trade and Industry Ministry under Malaysia's National Semiconductor Strategy (NSS). "We are already giving back significantly to Malaysia's tech ecosystem. High-end manufacturing requires substantial investment, and we are grateful for the strong and reliable partnerships we've established with local institutions. Together, we will shape the future of microelectronics," said Schroeder. Meanwhile, AT&S Malaysia senior vice president and managing director Suan See Yap attributed the plant's achievement in securing AMD's final manufacturing certification to the dedication of its workforce. "In the process, we have also obtained ISO certifications, including 9001, 14001, 27001, 45001, and 50001. "We currently have around 1,448 employees – 883 blue-collar and 565 white-collar staff," she said.

AT&S focuses on grooming locals for AI production facility
AT&S focuses on grooming locals for AI production facility

Free Malaysia Today

time06-05-2025

  • Automotive
  • Free Malaysia Today

AT&S focuses on grooming locals for AI production facility

Commercial operations of Austrian tech giant AT&S's Kulim plant began early this year. (Bernama pic) KULIM : Austrian tech giant AT&S is ramping up efforts to develop a skilled Malaysian workforce in line with a commitment to have locals make up almost 100% of the entire staff strength at its plant here. AT&S's executive vice-president for microelectronics business, Ingolf Schroeder, said the company is collaborating with vocational training centres and technical and vocational education and training (TVET) institutions to achieve the target. Malaysia has become a critical manufacturing base for Advanced Micro Devices (AMD), a company focused on artificial intelligence (AI) and high-performance computing. 'Our facility here (in Kulim) is producing AMD's next-generation products, including advanced integrated circuit (IC) substrates used in AI,' Schroeder told reporters at AT&S's Malaysian plant in the Kulim Hi-Tech Park yesterday. AT&S is already actively engaged with vocational and TVET institutions to provide professional training and foundational skills as well as to ensure smooth onboarding. AT&S Austria Technologie & Systemtechnik (M) Sdn Bhd senior vice-president and managing director Yap Suan See said the company sends experts to local institutions in partnership with the education sector. She said the company also has programmes to meet each student's preferences. '(For instance) some students prefer hands-on production floor experience, so we provide that,' she said. Yap noted that universities do not offer specialised courses related to IC substrates, a critical component used in semiconductors, smartphones, industrial electronics, automotive systems, medical devices, and AI hardware. 'We are working with institutions to develop the relevant modules and training programmes to better prepare students,' she said. She added that fresh graduates hired to work at the plant are given 'a lot of training'. Schroeder said AT&S has training programmes to meet industry needs. 'We have laid the foundation with local universities, and we need their willingness to adjust training content and make onboarding easier,' he said. 'We've had good cooperation from local authorities,' he added. AT&S currently has 1,500 employees at its 255,000-square-metre site in Kulim. In 2021, it picked Malaysia for its first facility in Southeast Asia. Construction work on the plant began in November 2021, while commercial operations began early this year. The firm has invested over RM5 billion in its Malaysian facility, part of a broader RM8.5 billion Phase 1 development plan involving two production sites, including RM600 million for research and development. AT&S's manufacturing facility in Kulim started the high-volume manufacturing of high-end IC substrates in March.

AT&S Starts High Volume Manufacturing At New Plant In Kulim/Malaysia
AT&S Starts High Volume Manufacturing At New Plant In Kulim/Malaysia

Barnama

time05-05-2025

  • Automotive
  • Barnama

AT&S Starts High Volume Manufacturing At New Plant In Kulim/Malaysia

LEOBEN, May 5 (Bernama) -- AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd is ready to start high volume manufacturing at the new campus at Kulim Hi-Tech Park (KHTP) in the state of Kedah. AT&S Malaysia delivers high-end Integrated Circuit (IC) Substrates for AMD's data center processors and other customers. The new campus in Kulim, about 350 kilometers north of the Malaysian capital Kuala Lumpur, was completed in record time. 'The new AT&S campus was built in just two years. One year later we are ready to start high volume production', says Ingolf Schroeder, EVP Business Unit Microelectronics at AT&S. 'This is probably a new world record. Starting high volume production is not only a milestone for AT&S but also an important step for Malaysia. By introducing high-end IC substrate technology to Kulim, we will contribute to Malaysia's economic and technological growth in a sustainable manner. AT&S is on track to become one of the top-three IC substrate providers worldwide and Kulim will be an important contributor to our growth and strengthen Malaysia's standing in South East Asia'.

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