In response to a challenging market situation, AT&S is implementing cost-saving measures. The company experienced a significant decrease in sales and net loss of 37 million euros in the past financial year. To further reduce costs, AT&S plans to cut up to 1,000 jobs at existing locations, including the main circuit board factory in Leoben, Styria. Preparations are already underway for approximately 20 to 25 percent of the job cuts to occur in Austria.
While markets for mobile devices and industrial applications weakened, there was a slight recovery in notebooks and PCs but servers remained weak. Despite facing challenges, AT&S is optimistic about future growth opportunities and anticipates a positive impact on demand and plant utilization due to expected market recovery. To support this growth, the company is planning significant investments in IC substrate production in new plants in Kulim and Leoben with high-volume production expected to begin by the end of the next financial year.
In addition to these investments, AT&S has secured a major customer in the area of artificial intelligence (AI) and is supplying technology for AI processors and energy management solutions. The company has also canceled its planned capital increase due to market volatility and is now focusing on the sale of its plant in Korea to generate proceeds. For the upcoming financial year, AT&S expects annual sales of 1.7 to 1.8 billion euros with growth opportunities in new applications related to AI.
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