KUALA LUMPUR, June 10 — Austria-headquartered global manufacturing company AT&S has chosen Malaysia as the home for its first production plant in South-east Asia, according to the Ministry of International Trade and Industry (Miti).
Its minister Datuk Seri Mohamed Azmin Ali issued a brief statement that AT&S CEO, Andreas Gerstenmaye, had spoken to Prime Minister Tan Sri Muhyiddin Yassin yesterday via a video conference to convey the official announcement.
According to the statement, the company’s main product of high-end printed circuit boards (PCB) and integrated circuit (IC) substrates involves a proposed total investment of RM8.5 billion (€1.7 billion) and will create 5,000 high-tech and high impact jobs once its new facility at Kulim Hi-Tech Park in Kedah opens.
“The construction of the facility is scheduled to begin in the second half of 2021 with commercial operations targeted to come on stream in 2024.
“This project is among the investments attracted by the Malaysian Investment Development Authority (Mida) under the National Short-Term Economic Recovery Plan’s (Penjana) investment scheme, launched on June 5, 2020,” Azmin said in a statement today.
In the statement, it also said that AT&S’ high-end PCB and IC substrates are used in mobile devices, industrial electronics, automotive applications as well as medical and health technology. As an international enterprise, the company has production facilities in Austria, India, China and South Korea.
Azmin added that he is optimistic that the investment also holds out bright prospects for our local SMEs to benefit from the supply chain generated.
Echoing the Miti minister, Muhyiddin said that AT&S’ decision to invest in Malaysia spoke volumes of the company’s confidence in the Malaysian economy’s capacity and promise of sustainable growth.
“Working hand in hand, AT&S’ footprint in Malaysia will also further boost the development of our semiconductor ecosystem, enable opportunities for our local vendors in the field of advanced electronics and spur high-tech employment for Malaysians,” the prime minister added.
Also present at the meeting, its local partner CEO of Mida Arham Abdul Rahman, AT&S Chief Operating Officer (COO) Ingolf Schröder, Malaysian Ambassador to the Republic of Austria Dato’ Ganeson Sivagurunathan and Dr Michael Postl, Austrian Ambassador to Malaysia, from Vienna and Kuala Lumpur, respectively.
Explaining why the company chose Malaysia, CEO of AT&S Andreas Gerstenmaye explained that after very intensive location scouting globally, the country has emerged in which the company want to push ahead with our ‘More than AT&S’ strategy.
“AT&S brings the latest generation of high- end technologies to the country and builds up a whole new technology sector.
“Beside manufacturing of high-tech products, a significant amount of R&D activities will be executed at this new location. Malaysia can benefit its position as a technology-country and can strengthen the region as a high-tech manufacturing hub in Asia.” Gerstenmaye added.
Azmin said that AT&S’ latest investment is a testament to the confidence of foreign investors in Malaysia’s economic prospects as well as the human capital resource available to cope with the high-tech demands of high-impact industries.
“Coupled with the strong showing of investment approvals for the first quarter (Q1) of this year, totalling RM80.6 billion in the manufacturing, services and primary sectors, AT&S’ investment bodes well for Malaysia’s recovery efforts from the economic challenges of the Covid-19 pandemic,” he added.