AT&S and IFC Forge Sustainability-Linked Loan for Malaysian Plant

AT&S Austria Technologie & Systemtechnik AG has partnered with the International Finance Corporation (IFC) to secure a $250 million sustainability-linked loan. This funding aims to further develop their integrated circuit substrate plant in Kulim, Malaysia. The loan is structured to provide financial incentives for AT&S to reduce greenhouse gas emissions by 31% by March 2028, measured against the fiscal year 2022 baseline.

This agreement, signed at AT&S's headquarters in Leoben, marks one of the first sustainability-linked loans in Malaysia's electronics industry. The investment will bolster Malaysia's semiconductor ecosystem and align with the country's sustainability objectives. A potential $150 million could be sourced from local banks under the same terms.

With facilities in Kulim, AT&S aims to enhance production of advanced substrates essential for high-performance computing, data centers, and AI infrastructure, while prioritizing quality and sustainability.