logo
AT&S focuses on grooming locals for AI production facility

AT&S focuses on grooming locals for AI production facility

Daily Express06-05-2025
Published on: Tuesday, May 06, 2025
Published on: Tue, May 06, 2025
By: Minderjeet Kaur, FMT Text Size: Commercial operations of Austrian tech giant AT&S's Kulim plant began early this year. (Bernama pic) KULIM: Austrian tech giant AT&S is ramping up efforts to develop a skilled Malaysian workforce in line with a commitment to have locals make up almost 100% of the entire staff strength at its plant here. AT&S's executive vice-president for microelectronics business, Ingolf Schroeder, said the company is collaborating with vocational training centres and technical and vocational education and training (TVET) institutions to achieve the target. Malaysia has become a critical manufacturing base for Advanced Micro Devices (AMD), a company focused on artificial intelligence (AI) and high-performance computing. 'Our facility here (in Kulim) is producing AMD's next-generation products, including advanced integrated circuit (IC) substrates used in AI,' Schroeder told reporters at AT&S's Malaysian plant in the Kulim Hi-Tech Park yesterday. AT&S is already actively engaged with vocational and TVET institutions to provide professional training and foundational skills as well as to ensure smooth onboarding. AT&S Austria Technologie & Systemtechnik (M) Sdn Bhd senior vice-president and managing director Yap Suan See said the company sends experts to local institutions in partnership with the education sector. She said the company also has programmes to meet each student's preferences. '(For instance) some students prefer hands-on production floor experience, so we provide that,' she said. Yap noted that universities do not offer specialised courses related to IC substrates, a critical component used in semiconductors, smartphones, industrial electronics, automotive systems, medical devices, and AI hardware. 'We are working with institutions to develop the relevant modules and training programmes to better prepare students,' she said. She added that fresh graduates hired to work at the plant are given 'a lot of training'. Schroeder said AT&S has training programmes to meet industry needs. 'We have laid the foundation with local universities, and we need their willingness to adjust training content and make onboarding easier,' he said. 'We've had good cooperation from local authorities,' he added. AT&S currently has 1,500 employees at its 255,000-square-metre site in Kulim. In 2021, it picked Malaysia for its first facility in Southeast Asia. Construction work on the plant began in November 2021, while commercial operations began early this year. The firm has invested over RM5 billion in its Malaysian facility, part of a broader RM8.5 billion Phase 1 development plan involving two production sites, including RM600 million for research and development. AT&S's manufacturing facility in Kulim started the high-volume manufacturing of high-end IC substrates in March. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Will there be stability in 2H?
Will there be stability in 2H?

New Straits Times

time24 minutes ago

  • New Straits Times

Will there be stability in 2H?

AS we draw the curtain on the first half of 2025 (H1 2025), one thing is clear: the road has been anything but smooth. Markets have been tossed by crosscurrents of global conflict, policy shocks, and investor anxiety. And yet, through all the noise, Malaysia has held its ground. The FBM KLCI, though not immune to volatility, demonstrated tenacity, underpinned by resilient fundamentals and steady macro stewardship. In an environment where the unexpected became the norm, Malaysia remained a beacon of relative calm in a turbulent world. Flashpoints and Fallout: How Global Conflict Reshaped Market Behaviour Few forces rattle markets more swiftly than war and H1 2025 offered no shortage of flashpoints. The Middle East conflict escalated dramatically with Israeli strikes on Iranian nuclear facilities, drawing U.S. military support and spurring global fears of a wider confrontation. For Malaysian markets, this sparked a sharp risk-off pivot. Oil prices surged, lifting our Energy Index, but equity sentiment broadly softened as capital moved to safe havens. Meanwhile, the protracted Russia-Ukraine war continued to strain global commodity supply chains. Elevated palm oil prices offered some tailwind to local plantation counters, but the ripple effects, particularly in feedstock costs were a reminder of our embeddedness in a fragile global supply web. Tariffs, Tensions and the Trade Trap: Navigating a Fragmented Global Economy The Trump administration's sweeping tariffs, peaking at 145 per cent on Chinese imports sent shockwaves through global supply chains. Malaysia, deeply integrated into regional manufacturing, absorbed the aftershocks. Our exporters, especially in semiconductors and renewables, were caught in the crossfire. The FBM KLCI fell over five per cent on April 2 following intensified tariff rhetoric, with risk assets broadly repriced. Adding to the strain, Malaysia was slapped with a 34.4 per cent import duty on solar panels, an outsized blow to our green energy sector. Global investors fled to safety; gold prices soared past US$3,400/oz. Yet amid this, the ringgit showed quiet strength, rising 0.8 per cent in Q1, a nod to investor faith in Malaysia's fiscal prudence. Relief came in May, when the US and China moved to de-escalate. Tariff rates were rolled back US duties cut to 30 per cent, China's to 10 per cent and a 90-day pause was announced. The KLCI rallied 2.33 per cent, buoyed by returning risk appetite and hopes of normalised trade flows. Still, unpredictability looms large, and any re-escalation will test Malaysia's resilience again. Rates, Risk, and Resilience: How Policy Signals Shaped Investor Positioning The global interest rate landscape was the third pillar shaping investor behaviour in H1. The US Fed held rates at 4.25-4.50 per cent, cautioning against premature easing due to tariff-induced inflation risks. This 'higher-for-longer' narrative kept a lid on valuations for rate-sensitive sectors like property and tech. However, a cooling inflation trend and softening growth expectations rekindled hopes for Q4 rate cuts. The ringgit appreciated about five pe rcent against the US dollar in H1, making it one of the strongest Asian currencies this year. It was further supported by RM13.4 billion in net foreign bond inflows, a testament to Malaysia's safe haven appeal in the region. Bank Negara Malaysia, staying its course with an OPR at 3.00 per cent, has successfully struck a delicate balance between supporting growth and anchoring inflation. Outlook for H2 2025: From Turbulence to Tactical Positioning As we pivot into the second half of 2025, investors must brace for persistent global volatility but also recognise the windows of opportunity it presents. The geopolitical landscape remains fluid. Any breakthrough in the Middle East or progress in the Ukraine conflict could unlock relief rallies, while renewed hostilities may keep risk appetite in check. Malaysia's equity markets are particularly sensitive to oil price volatility, where sharp spikes could strain inflation and subsidies, but also boost energy-linked counters. On the trade front, August's US-China tariff truce deadline looms large. If it leads to a lasting deal, Malaysia's export engine could rev up again, rewarding tech, logistics, and manufacturing sectors. If talks break down, investors should expect a return to defensive positioning. Staying nimble and sector-focused will be critical. Monetary policy remains the market's compass. With the Fed signalling possible Q4 rate cuts, global liquidity may begin to normalise. A weaker US dollar could strengthen the ringgit further and revive foreign flows. Bond yields may stabilise, benefitting capital-intensive and domestic consumption-driven sectors. Bank Negara Malaysia may join the easing cycle but is likely to remain data-dependent. Investors should track inflation trends and fiscal reform progress, especially the targeted subsidy rollout. Tactically, there is scope for selective sector rotation. Technology and construction may outperform if growth tailwinds return, while banks stand to benefit from loan growth recovery. Commodities and plantations remain tied to global cycles, but with El Niño risks and robust palm oil demand, upside remains plausible. Bottom line: H2 2025 is not without risk, but it offers a chance for calculated gains. Patience, diversification, and readiness to reposition swiftly will be key. Malaysia, underpinned by sound governance and regional relevance, remains a compelling story for long-term investors looking to turn uncertainty into strategic opportunity. The turbulence of early 2025 may well give way to calmer - or at least more predictable - seas, in which the Malaysian economy and the FBM KLCI can find firmer footing. Conclusion: Staying Strategic in a Shifting Landscape In light of continued volatility, Malaysian investors may consider the following actions: 1. Diversify across resilient sectors. Exposure to infrastructure, domestic services, and financials may help buffer external shocks. 2. Reassess export-heavy positions. Monitor global demand and currency strength, especially for manufacturing and E&E sectors. 3. Stay defensive where needed. Utilities and consumer staples offer stability when uncertainty prevails. 4. Use safe-haven assets selectively. Gold's sustained strength reinforces its role in hedging macro risk. 5. Monitor macro and policy shifts closely. Policy changes at home and abroad will shape sector leadership and capital flows. Ultimately, investing in uncertainty is not about avoiding risk, but managing it. In a world shaped by rapid change, staying informed, agile and disciplined will be the hallmark of successful strategies. Malaysia remains well-positioned, with strong governance, regional relevance, and compelling valuations to weather short-term turbulence and unlock long-term growth. *The writer is the head of dealing at Moomoo Malaysia.

Macron declares Anwar's France visit a 'success', key agreements signed
Macron declares Anwar's France visit a 'success', key agreements signed

New Straits Times

time24 minutes ago

  • New Straits Times

Macron declares Anwar's France visit a 'success', key agreements signed

PARIS: French President Emmanuel Macron has described Prime Minister Datuk Seri Anwar Ibrahim's two-day visit to France as a success, with the two nations reviving partnerships across all sectors. He said this was achieved through Anwar's high-level meetings with his French counterpart François Bayrou and other key officials, his important speech at Sorbonne University Paris, as well as his exchanges with civil society leaders and meetings with French businesses. Macron also called the visit meaningful, as it had been 15 years since the last official visit by a high-ranking Malaysian official. He expressed delight to see both countries signing agreements in areas such as minerals and aircraft purchases. "This visit is a success. We also heard your (Anwar) speech at the university, and that is a very important moment," he said during a joint press conference after holding a bilateral meeting with Anwar at the Élysée Palace here yesterday. Anwar had earlier delivered a lecture entitled "Southeast Asia and Europe: Recalibrating The Terms of Engagement" at Sorbonne University Paris, where he called for an equal partnership on all grounds between Southeast Asia and Europe. Macron said France's ties with Malaysia and Asean were getting stronger, adding that his visit to Indonesia, Vietnam, and Singapore in May this year was an indication of the revival. "In Southeast Asia, I reiterated our support for regional electricity connectivity, including support for civil nuclear energy," he added. Meanwhile, Anwar expressed hope that the French President would visit Malaysia after attending the 20th Francophonie Summit in Cambodia next year. He said bilateral ties between the countries were getting stronger with the commitment shown by the French government under Macron's leadership. "Malaysia Airlines and AirAsia are buying more planes. And Sarawak is also strengthening its own airline by collaborating with France," said Anwar, who is also the Finance Minister. At the same time, he expressed hope that French companies would continue to manufacture aeroplane parts in Malaysia. In the energy sector, Petroliam Nasional Bhd (Petronas) is working with partners from France in its joint ventures in Latin America and Africa. Earlier in the day, AirAsia signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus 321XLR aircraft, with deliveries confirmed by 2028. The Prime Minister also witnessed the memorandum of understanding exchange between 3P Capital Advisers and Ardian, a leading private investment firm from France, for the exploration of investment opportunities in the private markets. The private sector initiative can give Malaysians wider access to alternative investments, Anwar said. Meanwhile, during his meeting with Imerys, an industrial mineral processing company that has been operating in Malaysia for over 25 years, Anwar said the company expressed its commitment to expand operations and support the development of a high-value, environmentally-friendly manufacturing sector in the country. In addition, Anwar held a meeting with the management of Arkema, a global leader in specialty chemicals, which is evaluating potential new investments in Malaysia. Anwar was accompanied on this visit by Foreign Minister Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Mohamad Sabu, Defence Minister Mohamed Khaled Nordin, and Investment, Trade, and Industry Minister Tengku Zafrul Abdul Aziz. Also joining the delegation was Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir. France remains one of Malaysia's top five trading partners within the European Union. In 2024, bilateral trade totalled RM15.95 billion (US$3.63 billion), with RM6.26 billion (US$1.49 billion) recorded between January and May this year.

Smarter machines coming to Penang factories
Smarter machines coming to Penang factories

The Star

timean hour ago

  • The Star

Smarter machines coming to Penang factories

Participants of the AI showcase looking at a demonstration of artificial intelligence at work. — Courtesy photo BIG changes are coming to Penang's manufacturing sector involving artificial intelligence (AI) that can spot problems, make decisions and take action without waiting for human instructions. Global tech giant IBM and Malaysia Semiconductor Industry Association introduced agentic AI at a recent showcase event in Penang. Unlike older automation systems, agentic AI does not just follow strict coding. It can detect patterns, set its own goals and adjust its actions in real-time, making it ideal for complex manufacturing environments where speed and accuracy matter. This means that local factories could soon rely on machines to predict breakdowns before they happen, inspect products for defects on the spot or manage the flow of materials through supply chains, all without human input. The technology is being pitched as a major productivity booster, especially for Penang's export-driven industries. 'Agentic AI isn't just another upgrade,' said IBM Malaysia country manager Dickson Woo. 'In manufacturing, it's a game-changer helping companies make faster, smarter decisions and automate entire processes. 'This leads to smarter factories, fewer delays, better quality and a stronger global edge for Malaysian-made goods,' he said. The event drew business leaders, tech providers and policymakers looking to future-proof Penang's industrial backbone and keep pace with a fast- moving global market where intelligent automation is now essential.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store