AT&S to increase spending in China
AT&S is to increase capital spending by up to 300 million euros (US$337 million) in the next financial year, including a major investment in its Chongqing plant.
The Austria-based firm, which produces components used in computers, smartphones and the automotive industry, aims to increase investment mainly in China, despite the weak smartphone market.
It will invest in maintenance, expanding capacity and technology upgrades. About 80 million euros will be used to expand its Chongqing plant. Additional investment in technology and capacity will also be used in plants in Shanghai and Chongqing, depending on market development, AT&S said.
In a “highly challenging market environment,” AT&S is optimistic that new growth engines such as 5G and AI will boost its income.
In its previous fiscal year, which ended in March, AT&S posted revenue of 1.03 billion euros, a 3.6 percent growth year on year. Chinese plants are its major manufacturing base.