AT&S Boosts Investments in Chongqing China Plant


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Summary:

  • AT&S positions itself for the next technology generation in its high-end PCB core business
  • Total investments at the Chongqing plant will be increased from EUR 350 million to roughly EUR 480 million by 2017
  • Ramp-up of the substrate plant currently undergoing qualification in Chongqing still scheduled for 2016

AT&S is one of the globally leading manufacturers of high-end HDI and any-layer printed circuit boards (PCBs). Key trends in this industry include the ongoing miniaturisation and increasing modularisation. As a result of this development, high-end PCB technologies merge faster and faster with the technologies required by the semi-conductor industry.

In addition to the entry into the IC substrate business, which is currently in its start-up phase, this opens up significant new potential for AT&S to position itself for this next technology generation in the core business at an early stage.

To maintain the long-term and sustainable profitable growth in the high-end sector, AT&S will explore this market potential by building new capacities for this next generation of PCBs, so-called substrate-like PCBs. With the consent of the Supervisory Board, the Management Board has decided the required investments at the Chongqing site. The planned investment volume will consequently increase from EUR 350 million to some EUR 480 million by mid-2017.

The start of production for this technology is expected for the second half of the calendar year 2016 and is based on a close cooperation between the two AT&S sites in Shanghai and Chongqing. Synergies will be leveraged above all in the areas of technology, process know-how and management capacities: technology development of substrate-like PCBs initially takes place in Shanghai plant with first quantities produced already in calendar year 2015. High volume mass production of SLPs expected to start second half of calendar year 2016 at new plant in Chongqing.

The additional investments required will be financed through improved cash flow and using existing credit facilities.

The ramp-up of the substrate plant in Chongqing, which is currently undergoing qualification, is expected as planned with the first revenues in the calendar year 2016.

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