PETALING JAYA: AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd has opened its integrated circuit (IC) substrates manufacturing facility in Kulim Hi-Technology Park in Kedah – marking an inaugural plant in Southeast Asia.

So far, the global technology company has invested just over €1 billion (RM5.1 billion) in its AT&S Campus at Kulim HighTech Park, which will generate more than 6,000 high-skilled job opportunities.

Deputy Investment, Trade and Industry Minister Liew Chin Tong who officiated at the event, said, “The semiconductor industry is of tremendous economic and strategic importance to Malaysia, especially in the current geopolitical environment. Holding 7% of global market share in the industry, Malaysia is the world’s sixth largest semiconductor exporter.”

As a strategic industry, he added, the semiconductor industry deserves to be at the forefront of Miti’s policy-making priorities.

“The New Industrial Master Plan 2030 (NIMP 2030) is a start. Its first mission on advancing economic complexity by moving up the value chain to revitalise our manufacturing sector, is exactly what the semiconductor industry needs. Additionally, by integrating the value chains of semiconductor and other high value-added industries such as automotive and medical, Malaysia will be able to create a more holistic supply chain locally,” Liew said,

To make NIMP 2030’s goals for the semiconductor industry a reality, he said, the government through the Ministry of Investment, Trade and Industry (Miti) will take the lead by providing suitable incentives to strengthen the manufacturing and design capabilities of semiconductor companies in order to better linkages between SMEs and MNCs as well facilitating the commercialisation of R&D activities.

Thus, he added, the recent National Investment Council meeting has decided to establish the National Semiconductor Strategic Task Force to ensure a whole-of-government approach to enhancing the growth of the industry.

Malaysian Investment Development Authority (Mida) CEO Datuk Wira Arham Abdul Rahman said, “AT&S’s advanced IIC substrates manufacturing activity will certainly expand our E&E industry solidifying Malaysia’s position as a major production centre for the industry throughout Asia. It will also be a catalyst for existing wafer fabrication plants to expand, securing IC substrate materials and opening up new growth areas that will ultimately generate employment.”

AT&S CEO Andreas Gerstenmayer said, “With our new state-of-the-art factory for IC substrates, we are able to establish a completely new technology sector in Malaysia, one of the future global microelectronics hotspots. We will not only manufacture high-end IC substrates for high-performance processors at our new facility, but also conduct R&D activities at this location. This creates a win-win situation for both, AT&S as well as the Malaysian society as an investment in R&D is an investment in the future of a country.”

The Kulim facility is set to start production by the fourth quarter of this year.