June 17, 2026 /SemiMedia/ — Austrian advanced printed circuit board and IC substrate maker AT&S said it plans to invest up to €2 billion in Malaysia to expand capacity, as demand tied to artificial intelligence infrastructure continues to strengthen.

Chief Executive Officer Michael Mertin said the company will fully expand its Kulim facility. AT&S shares rose nearly 30% after the announcement, reflecting investor expectations that AI servers and high-performance computing will continue driving demand for advanced interconnect technologies.

AT&S recently said it would expand capacity at its Kulim site and raised its outlook for the 2026/2027 fiscal year. The company said the expansion is supported by agreements with U.S. chipmaker AMD and another technology company. Industry sources have identified the second major customer as Intel.

The company said the additional capacity required at its existing facility and unused space in a second Kulim plant is fully supported and financed by long-term customer commitments. That gives the expansion a clearer order base and helps reduce capital spending risk.

As AI servers, GPUs, CPUs and high-speed interconnect systems become more complex, advanced PCBs and IC substrates are becoming increasingly important for signal integrity, thermal management and system-level performance.

AT&S is positioning its Malaysia expansion to capture more demand from AI computing hardware supply chains, where higher layer counts, advanced materials and dense interconnect capabilities are becoming critical.

Mertin said the company expects at least five leading U.S. high-tech customers that it already knows well to become technology partners. The comment suggests AT&S is deepening long-term relationships with major chip and technology companies.

Industry analysts said AI infrastructure investment is spreading beyond processors and memory into upstream materials, substrates and circuit boards. High-density interconnect, power integrity and thermal requirements in server platforms are driving stronger demand for advanced PCB and substrate suppliers.

The Malaysia expansion also highlights Southeast Asia’s growing role in the global semiconductor and electronics manufacturing supply chain. As customers seek more resilient regional supply options, industrial hubs such as Kulim are becoming increasingly important for advanced electronics manufacturing.