IJM secures RM1.23 billion contract to build semiconductor facility in Kedah

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IJM secures Kedah semiconductor contract

Highlights

IJM Construction secured a RM1.23 billion contract from AT&S Malaysia to build a semiconductor manufacturing facility at Kulim Hi-Tech Park, with completion expected in the fourth quarter of 2027.
With this new contract, IJM Construction's outstanding order book has increased to RM10.6 billion, including building, advanced industrial and civil engineering projects.
AT&S plans additional investments of between 1.5 billion euro and 2 billion euro in Kulim, driven by strong demand for IC substrates from AMD and other major customers.

This article was translated from the original. Read the original version by our correspondent here.

Project scope and implementation timeline

As reported by The Edge Malaysia, IJM secured the contract through its wholly owned subsidiary, IJM Construction Sdn Bhd, from AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd to design and build a semiconductor manufacturing facility at Kulim Hi-Tech Park, Kedah.

In a stock exchange filing on Monday, IJM said IJM Construction had received the letter of award for the design and construction of the facility. The project involves the construction of a four-storey production building, a three-storey central utility building and a single-storey wastewater treatment facility.

According to IJM, 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 prefabricated Industrialised Building System components, while the production building is targeted to achieve LEED Gold certification.

Construction is scheduled to begin 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 has developed in advanced manufacturing, particularly for projects requiring a high degree of technical coordination across building systems, engineering and cleanroom environments.

Impact on order book and Kulim's semiconductor hub

The latest contract follows RM909.5 million worth of semiconductor and medical technology projects secured by IJM Construction in August 2026. With the new award, IJM Construction's outstanding order book now stands at RM10.6 billion, comprising building construction, advanced industrial facilities and civil engineering projects.

AT&S Malaysia is a subsidiary of Vienna-listed Austria Technologie & Systemtechnik AG, an Austrian producer of high-end printed circuit boards and integrated circuit substrates used to connect semiconductor chips to circuit boards. The group established its first manufacturing campus in Southeast Asia in Kulim and began high-volume production of IC substrates for U.S. chipmaker Advanced Micro Devices Inc in 2025, mainly for data centre processors.

In June, AT&S announced plans to invest between 1.5 billion euro and 2 billion euro to expand its operations in Kulim, supported by long-term commitments from AMD and another major technology customer. The expansion includes completion works for its existing second plant as well as the construction of new manufacturing facilities for IC substrate cores and advanced PCBs.

AT&S initially allocated 1.7 billion euro for the first phase of its Kulim campus, which officially opened in January 2024. At Monday's market close, IJM shares closed at RM2.80, down five sen or 1.75%, giving the group a market capitalisation of RM10.21 billion.

In our previous coverage of the government's strategy under NIMP 2030 and the National Semiconductor Strategy, we explained Malaysia's efforts to reduce exposure to fluctuations in the global semiconductor cycle by diversifying its growth base and export destinations. The article also highlighted the strengthening of the E&E value chain through high-value-added activities such as integrated circuit design and advanced packaging, while reinforcing domestic supply chains.

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