PETALING JAYA: Malaysia’s semiconductor sector has received another boost as Austrian company AT&S moves to expand its operations in Kulim, Kedah, says Datuk Seri Anwar Ibrahim (pic).
The Prime Minister said the expansion follows meetings and discussions held in early June, and is expected to further deepen the group’s footprint in the country’s high-value manufacturing ecosystem.
“The investment is expected to bolster the country’s semiconductor ecosystem and create more high-skilled jobs for Malaysians,” he said in a social media post yesterday.
Anwar, who is also Finance Minister, said the strong confidence from international investors such as AT&S was due to the country’s clear policy direction, political stability, improved governance, and the government’s push for economic transformation.
“Together, these factors are positioning the country as a leading hub for advanced technology investment and a new centre of regional growth.
“The development also reflects growing trust and commitment to Malaysia’s digital economy agenda, translating ambitions into tangible, high-impact investments on the ground,” added Anwar.
On June 6, he said the company employs about 2,700 workers there, adding that Malaysia is one of AT&S’ major production hubs alongside Austria, China and India.
“AT&S is a global leader in high-value Integrated Circuit (IC) substrates and printed circuit boards,” he explained.
The Prime Minister said the presence and continued expansion of global technology firms such as AT&S demonstrate confidence in Malaysia’s competitiveness as nations increasingly compete to secure strategic investments linked to semiconductors, artificial intelligence and advanced manufacturing.
The remarks come as Malaysia seeks to tap rising global demand for semiconductors and advanced electronics, as supply chains continue to shift worldwide.
According to Reuters, AT&S announced that it is investing up to €2bil (RM10bil) in Malaysia to capitalise on the AI boom, sending its shares soaring nearly 30%.
“We will fully expand our site in Kulim,” AT&S chief executive officer Michael Mertin told Reuters in an interview on Monday.
AT&S said the investments required for additional production capacity at the existing plant and in the previously unused building at the second plant in Kulim are fully supported and financed by long-term customer commitments.
“We expect to have represented at least five of the leading high-tech clients we know as tech partners from the United States,” said Mertin.
The company said it will expand capacity in Kulim and has lifted its 2026/27 outlook, citing agreements with US chipmaker AMD and another undisclosed tech partner amid strong demand for AI infrastructure.
