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# IJM wins RM1.2 billion construction contract for chip-component maker in Malaysia
- URL: https://www.southeastasiaconnect.com/ijm-ats-rm1-23-billion-kulim-facilities-contract/
- Published: 2026-10-13T00:42:45.000Z
- Updated: 2026-10-13T02:06:52.000Z
- Description: The award adds production and supporting infrastructure at AT&S’s existing chip-component campus in northern Malaysia.
- Author: Southeast Asia Editorial Team
- Tags: #google-news, News, Malaysia, Construction, Advanced manufacturing

[IJM](https://www.ijm.com/?ref=southeastasiaconnect.com) has won an approximately RM1.23 billion contract to design and build manufacturing facilities for AT&S Malaysia at Kulim Hi-Tech Park in Kedah. The award covers production, utilities and wastewater treatment buildings at a semiconductor campus where AT&S already makes components used in advanced processors.

That context gives the construction award its significance. In a [May 2025 update](https://ats.net/en/press/ats-starts-high-volume-manufacturing-at-new-plant-in-kulim-malaysia/?ref=southeastasiaconnect.com), AT&S said it had started high-volume manufacturing of integrated-circuit substrates at Kulim, including substrates for AMD data-centre processors. These substrates connect chips to the wider electronic package. The 2025 plant is historical context for IJM's new building contract. AT&S reported that its existing first plant had about 255,000 square metres of gross floor area and around 500 high-tech machines.

## Production space and supporting services

IJM Construction accepted the letter of award from AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd on 12 October, according to its [Bursa Malaysia filing](https://www.bursamalaysia.com/market%5Finformation/announcements/company%5Fannouncement/announcement%5Fdetails?ann%5Fid=3714107&ref=southeastasiaconnect.com). The specified work is a four-storey production facility, a three-storey central utility building and a single-storey wastewater treatment facility. The scope ties manufacturing floor space to the services needed to run an industrial site, giving Malaysian construction and specialist-facility suppliers a defined work programme rather than a general expansion intention.

The project is scheduled to begin in the fourth quarter of 2026 and take an estimated 14 months from commencement. IJM expects a contribution to group revenue and earnings from its financial year ending 2027\. Those are the company's forward timetable and financial expectation; the award itself is the current development.

Kulim already sits in AT&S's network of IC-substrate sites. In 2025, the company described a 'Substrate Triangle' linking Malaysia, China and Austria, with process knowledge shared among the locations. IJM's newly awarded building programme adds substantial construction activity at the Malaysian node of that network.

**Sources:** [IJM's 12 October 2026 Bursa announcement](https://www.bursamalaysia.com/market%5Finformation/announcements/company%5Fannouncement/announcement%5Fdetails?ann%5Fid=3714107&ref=southeastasiaconnect.com); [Bernama's same-day report](https://bernama.com/en/region/news.php?id=2619180&ref=southeastasiaconnect.com); [AT&S's 5 May 2025 Kulim manufacturing update](https://ats.net/en/press/ats-starts-high-volume-manufacturing-at-new-plant-in-kulim-malaysia/?ref=southeastasiaconnect.com).