๐Bloomberg TechnologyโขStalecollected in 46m
AMD Supplier AT&S Rallies on Production Boost
๐กSupply chain expansions for AMD indicate growing capacity for high-performance AI hardware.
โก 30-Second TL;DR
What Changed
AT&S shares rallied following increased output pledges
Why It Matters
Austrian chip-part maker AT&S saw a significant stock rally after raising guidance and increasing output to meet demand from AMD.
What To Do Next
Track supply chain reports for chip-component manufacturers to anticipate potential hardware bottlenecks.
Who should care:Developers & AI Engineers
๐ง Deep Insight
Web-grounded analysis with 13 cited sources.
๐ Enhanced Key Takeaways
- โขAT&S is undertaking a substantial investment of โฌ1.5-2.0 billion to expand its production capacity for high-end IC substrates across its facilities in Kulim, Malaysia, and Chongqing, China.
- โขThis significant capacity expansion is backed by long-term customer commitments from AMD and another major, unnamed technology company, which industry sources suggest is Intel.
- โขThe company has substantially increased its financial outlook for fiscal year 2026/27, now projecting currency-adjusted revenue growth of 45-55% (up from a previous forecast of 30-35%) and an EBITDA margin of 32-37% (an increase from 25-29%).
- โขAT&S is actively developing advanced glass core substrates, which offer superior dimensional stability, signal quality, and the ability to support finer structures and larger package formats compared to conventional organic materials, crucial for future AI and high-performance computing applications.
- โขThe IC substrates supplied by AT&S are integral components for high-performance, energy-efficient AMD data center processors, powering applications in AI and virtual reality.
๐ ๏ธ Technical Deep Dive
- AT&S manufactures IC substrates using an advanced, highly automated build-up process conducted in a clean room environment.
- The company employs state-of-the-art technologies, including the Semi-Additive Process (SAP), for creating intricate circuitry.
- Current AT&S substrates feature conductor tracks as narrow as five micrometers, with ongoing research and development aiming for even finer structures of two micrometers, potentially utilizing glass as a carrier material.
- AT&S is developing glass core substrates, which provide a stable and planar foundation for larger, more capable chip packages, enabling smaller structures, cleaner signal transmission, and improved thermal behavior compared to traditional organic materials.
- The development of glass core substrates includes through-glass vias for vertical electrical connections and advanced copper patterning, supporting high-density interconnects.
- The company is also working on 'Multifunctional Core IC Substrates,' designed as active, co-designed platforms that integrate compute, memory, radio frequency (RF), photonics, and power delivery within a single package.
- These advanced substrate technologies are critical for enabling high-performance and energy-efficient data center processors, particularly for demanding AI and VR applications.
๐ฎ Future ImplicationsAI analysis grounded in cited sources
AT&S's substantial capacity expansion and technological leadership in IC substrates will solidify its position as a crucial supplier for the booming AI and high-performance computing markets.
The multi-billion euro investment, backed by long-term commitments from major chipmakers like AMD and potentially Intel, directly addresses the increasing demand for advanced packaging technologies in AI infrastructure, ensuring AT&S's continued relevance and growth.
The industrialization of glass core substrates by AT&S could enable the next generation of advanced chip packaging, leading to significantly more powerful and energy-efficient AI accelerators and data center processors.
Glass offers superior dimensional stability, signal quality, and the ability to support finer structures and larger packages compared to organic materials, which are critical for future chip designs and heterogeneous integration, pushing the boundaries of computing performance.
โณ Timeline
1987
AT&S (Austria Technologie & Systemtechnik) founded.
2006
Acquisition of Korean PCB manufacturer Tofic Co. Ltd., expanding AT&S's global manufacturing footprint.
2023-11
AT&S announces it is providing IC substrates for AMD's high-performance data center processors and is preparing for significant capacity expansion for AMD.
2024-2025
New high-end production facility for IC substrates in Kulim, Malaysia, and a European competence center in Leoben, Austria, are expected to commence production.
2026-04-22
AT&S announces the advancement of glass core substrates from research towards industrial use for AI, high-performance computing, and photonics applications.
2026-06-15
AT&S announces a โฌ1.5-2.0 billion investment to expand AI substrate capacity in Kulim, Malaysia, and Chongqing, China, backed by long-term customer commitments, significantly raising its financial guidance for FY 2026/27.
๐ Sources (13)
Factual claims are grounded in the sources below. Forward-looking analysis is AI-generated interpretation.
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Original source: Bloomberg Technology โ