KUALA LUMPUR, June 16 — Technologie & Systemtechnik Aktiengesellschaft’s (AT&S) decision to expand its operations in Kulim, Kedah, through a new investment of up to €2 billion (RM9.4 billion) is expected to further strengthen Malaysia’s semiconductor ecosystem and create high-skilled employment opportunities for Malaysians, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar said the Austrian company’s decision reflected growing international investor confidence in Malaysia, underscoring how clear policies, political stability, good governance and the government’s commitment to economic transformation are positioning the country as a leading destination for advanced technology investments and a new regional growth hub.

“Meetings and discussions held in early June have borne fruit, with AT&S announcing its intention to expand its operations in Kulim, Kedah, further reinforcing Malaysia’s position as a destination for high-impact technology investments,” he said in a post on X today.

Anwar was commenting on a statement issued by AT&S on its website, in which the chipmaker said it was committed to investing between €1.5 billion and €2.0 billion to expand its manufacturing site in Kulim, supported by long-term customer commitments.

Anwar said the development was significant in reinforcing mutual trust and commitment towards the future of Malaysia’s digital economy, now translated into tangible, high-impact investments for the country.

Meanwhile, AT&S chief executive officer Michael Mertin said the expansion of the Kulim facility reflected customers’ confidence in the company’s capabilities and their shared commitment to long-term profitable growth.

“Our technological leadership, strong partnerships with global players in the semiconductor industry and proven ability to scale advanced manufacturing facilities position us as the partner of choice for the next wave of growth,” he said.

AT&S chief financial officer Gerrit Steen said the €1.5 billion to €2.0 billion investment was fully supported and financed through long-term customer commitments.

“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,” he added.

AT&S announced the expansion of its Kulim manufacturing site following agreements with its customer, AMD, and another leading technology company.

The move reinforces AT&S’ strong technological position and deepens its long-standing partnerships with leading customers in the semiconductor industry.

Building on the successful ramp-up of Plant 1, the expansion includes fitting out the existing Plant 2 structure and constructing a new manufacturing facility for integrated-circuit substrate cores and advanced printed-circuit boards, AT&S said. — Bernama