Austrian tech firm expands capacity in China
AT&S, an Austrian electronics component supplier with factories in Shanghai and Chongqing, is to invest 450 million euros (US$551 million) in expanding capacity in the new fiscal year since April, mainly in its Chongqing factory.
The company, which manufactures high-end printed circuit boards (PCB) and integrated circuit (IC) substrates, expects a surge in demand for its products used in electronics and chips. Its business is fueled by digitalized society trends with 5G communication, artificial intelligence and intelligent cars, company officials said in Shanghai on Tuesday.
In the new fiscal year, its capital spending will hit 630 million euros, including 450 million euros in expansion investment mainly in Chongqing, CEO Andreas Gerstenmayer said.
AT&S announced an additional investment of 200 million euros in Chongqing, which makes the factory's long-term and total investment to hit 1.2 billion euros. The factory has three plants, with the third and biggest plant to start production this year and be fully operational in 2024.
In the fiscal year of 2020 ended in March, AT&S's global revenue hit a record high 1.18 billion euros, a growth of 19 percent year on year. The capacity of its first Chongqing plant, which serves growing demand for new-technology substrates, made a significant contribution to revenue growth.
The 5G-powered digital economy and changing consumer behavior due to COVID-19 favored AT&S, with a growing demand for devices such as tablets, smartphones and wearables, as well as cars.
AT&S is also upgrading technology in its Shanghai factory.
Due to a shortage of chips in the automotive industry, AT&S has seen a gradual rebound in demand since the fourth quarter of last year.