KUALA LUMPUR (Oct 12): IJM Corporation Bhd (KL:IJM) has secured a RM1.23 billion contract from AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd to construct semiconductor manufacturing facilities at the Kulim Hi-Tech Park in Kedah.
AT&S Malaysia is a subsidiary of Vienna-listed Austria Technologie & Systemtechnik AG (AT&S), an Austrian manufacturer of high-end printed circuit boards (PCBs) and integrated circuit (IC) substrates, which are used to connect semiconductor chips to circuit boards.
The Austrian group established its first Southeast Asian manufacturing campus in Kulim, where it began high-volume production of IC substrates for US chipmaker Advanced Micro Devices Inc (AMD) in 2025, primarily for use in data centre processors.
In a bourse filing on Monday, IJM said its wholly owned subsidiary IJM Construction Sdn Bhd had accepted a letter of award for the design and construction of the facilities.
The project involves the construction of a four-storey production building, a three-storey central utility building and a single-storey wastewater treatment facility.
IJM said the 14-month project covers design development, procurement, construction, testing and commissioning, including civil and structural works, mechanical and electrical systems, cleanrooms, process utilities and supporting infrastructure.
The project will also incorporate Industrialised Building System (IBS) precast components, while the production building is targeted to achieve Leadership in Energy and Environmental Design (LEED) Gold certification.
Construction is scheduled to commence in the fourth quarter of 2026, with completion expected in the fourth quarter of 2027.
IJM group chief executive officer and managing director Datuk Lee Chun Fai said the contract award builds on the capabilities IJM Construction had developed in advanced manufacturing.
"Semiconductor facilities demand a high degree of technical coordination across the building, mechanical and engineering systems, cleanroom environment and process utilities, while meeting demanding programme requirements," he said in a separate statement.
"The scale and integrated scope of this project, together with its 14-month delivery programme, demonstrate our ability to manage technically complex projects at speed," Lee added.
The latest contract follows RM909.5 million worth of semiconductor and medical technology projects secured by IJM Construction in August 2026.
With the latest award, IJM Construction's outstanding order book stands at RM10.6 billion, covering building construction, advanced industrial facilities and civil engineering projects.
In June, AT&S announced plans to invest between €1.5 billion and €2 billion (approximately RM7 billion to RM9.3 billion) to expand its Kulim operations, backed by long-term commitments from AMD and another major technology customer.
The expansion includes fitting out its existing second plant and constructing a new manufacturing facility for IC substrate cores and advanced PCBs.
AT&S had initially committed €1.7 billion to the first phase of its Kulim campus, which was officially opened in January 2024, making it the largest single investment by an Austrian company in Malaysia at the time.
IJM shares closed at RM2.80 on Monday, down five sen or 1.75%, valuing the group at RM10.21 billion. Year-to-date the stock is up almost 26%
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