English
“compiled: Elmili TK”
In Austria’s Styria region, the quiet town of Leoben has become an unlikely AI success story. European AI hardware boom demand has transformed local industry and boosted AT&S shares.
The Austrian electronics company produces integrated circuit substrates. These specialized boards connect chips with memory, power supplies and other components.
AT&S has seen its shares rise more than 450 percent this year. The company now ranks among Europe’s biggest beneficiaries of the artificial intelligence boom.
Chief Executive Michael Mertin says Europe can still secure important positions in the global AI industry. However, he does not expect Europe to match the United States in chip innovation.
Europe also cannot compete with Asian manufacturers on production scale, Mertin said. Instead, he believes Europe can lead in highly specialized technologies.
AT&S finds its place in the AI supply chain
AT&S began operations in 1987 as a producer of printed circuit boards. The company entered the IC substrate business in 2016.
It started mass production at a new facility in Chongqing, China. AT&S later expanded its production network with a Malaysian factory in 2024.
Meanwhile, the company has strengthened its European base in Leoben. The Hinterberg facility houses AT&S headquarters and its research operations.
The company invested more than 500 million euros in a research and production centre. The facility opened last year and strengthened Austria’s position in advanced electronics.
AT&S now operates Europe’s only major commercial production facility for advanced IC substrates. That position gives the company an important role in the region’s AI supply chain.
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AI demand drives a sharp rise in orders
The rapid expansion of AI computing has increased demand for advanced electronic components. AT&S executives say customer interest continues to grow.
Senior operations director Barbara Decker-Schloegl said inquiries have risen across the company’s business areas. She expects demand for AI-related computing modules to remain strong.
Industry consultant Malcolm Penn also identifies AT&S as a major European beneficiary. He says the company benefits directly from growing demand for AI hardware.
IC substrates play an important role in advanced computing systems. They can help reduce power consumption, limit electronic noise and improve processing speeds.
The broader European AI hardware boom also benefits other specialized companies. Dutch semiconductor equipment giant ASML and British chip designer Arm hold major positions.
AT&S operates in a different segment of the semiconductor industry. However, its recent growth highlights Europe’s ability to benefit from AI without dominating chip production.
Leoben gains jobs and international attention
Around 2,200 employees from more than 70 countries work at the Leoben site. The town has about 28,000 residents and a long history of iron mining.
The company has become one of the region’s largest employers. About 60 percent of its employees are Austrian.
The Technical University of Leoben has also supported the company for decades. The university has traditionally focused on mining, metallurgy and materials science.
Its graduates provide AT&S with engineers and other technical specialists. This connection has helped the company maintain a skilled workforce in the region.
Local officials say AT&S has brought highly qualified jobs to Leoben. The company has also increased the town’s international visibility.
However, rapid growth creates new challenges for the community. More employees and families increase demand for housing, schools and childcare.
A company woven into the town’s identity
AT&S has become deeply connected to Leoben’s local economy. Many residents have family members who worked or still work for the company.
Social worker Sigrid Halm described AT&S as extremely important to the town. Her father worked at the Hinterberg facility as an engineer and senior executive.
Both of her children have also worked for AT&S. She said many people in her community remain connected to the company.
For AT&S, the challenge now involves sustaining growth while navigating global competition. The company’s success shows how specialized European manufacturers can benefit from AI.
As artificial intelligence expands demand for increasingly powerful computing systems, those specialized suppliers could become even more important.
The European AI hardware boom therefore extends beyond processors and major technology companies. It also reaches the specialized components that allow modern AI systems to operate.
