New Delhi: Semiconductor manufacturer AT&S Austria Technologie & Systemtechnik AG, headquartered in Austria, plans to invest RM 8.5 billion ($ 2 billion) to set up a plant in Malaysia, the first in Southeast Asia, the Ministry of International Trade and industry of Malaysia.
Construction of the facility at Kulim High-Tech Park in northern Kedah state is slated to begin in the second half of this year, with commercial operations slated to begin in 2024, the ministry said in a statement.
“In addition to manufacturing high-tech products, a significant amount of research and development will take place at this new location,” said AT&S CEO Andreas Gerstenmeier.
AT&S, which manufactures high-quality printed circuit boards and IC substrates for use in mobile devices, industrial electronics, automotive, and medical and healthcare applications, has manufacturing facilities in Austria, India, China and South Korea.
Malaysia has a strong electrical and electronics manufacturing sector that supplies products to major companies including Apple Inc. Exports from this sector account for about 40% of its total annual exports and about 7% of world semiconductor trade.
“AT&S’s presence in Malaysia will also further develop our semiconductor ecosystem, open up opportunities for our local suppliers in advanced electronics and stimulate Malaysian employment in high tech,” said Prime Minister Muhiddin Yassin.