AT&S expands Kulim with up to €2 billion investment
Austrian PCB and IC substrate manufacturer AT&S is expanding its Kulim manufacturing site in Malaysia, backed by agreements with AMD and another unnamed technology company.
The total investment of EUR 1.5 to 2.0 billion is fully covered by long-term customer commitments. AT&S simultaneously raised its revenue growth outlook for 2026/27 to 45–55%.
The expansion builds on the successful ramp-up of plant 1 in Kulim and includes fitting out the existing structure of plant 2, alongside construction of a new manufacturing site for IC substrate cores and advanced PCBs, according to a press release from AT&S.
The financial terms are notable. Customer payments are expected to positively impact revenue and earnings already in the current year, with full operational impact materialising over the next few years. AT&S now expects constant-currency revenue growth of 45 to 55% in 2026/27, up from previous guidance of 30 to 35%. The EBITDA margin outlook rises to 32–37% from 25–29%. Capital expenditure for 2026/27 is planned at roughly EUR 1.0 to 1.2 billion, up from EUR 400 million, with positive operating free cash flow expected.
"We are structuring these agreements to support long-term growth while maintaining financial discipline. At the same time, they support our objective of further strengthening our balance sheet and financial flexibility," said CFO Gerrit Steen.
AT&S frames the investment as a response to structural rather than cyclical demand. The shift from monolithic chips to chiplet-based designs has already driven significant substrate demand growth, with AI accelerating that transition. The rise of agentic AI is driving requirements for larger, more complex substrate solutions with higher integration density, greater layer counts and faster innovation cycles.
The forecast assumes no significant deterioration in the geopolitical situation or in the currently tight supply of key materials, including fiberglass mats – a nod to the broader supply chain pressures that have characterised the PCB and substrate industry in 2026.
