Recognising decarbonisation greatly fuels the rapid growth of power semiconductors, in particular those based on wide bandgap materials, Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) (“Infineon”), a leader in Power Systems, is now taking a further step to shape the industry by significantly expanding its Kulim fab – over and above the original investment announced in February 2022. The company unveiled its plan to build the world’s largest 200mm SiC (silicon carbide) Power Fab. Infineon will invest additionally up to €5 billion over the next five years in Kulim in a second phase of the construction of module 3.
The Minister of Investment, Trade and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul Aziz said, “Infineon’s expansion of their world-class silicon carbide facility in Kulim represents a significant milestone in Malaysia’s journey towards developing advanced manufacturing capabilities. This expansion not only creates high-skilled employment opportunities, but also positions Malaysia as a frontrunner in driving green technologies, a crucial aspect of achieving our global sustainable development goals. We value the trust, confidence and recognition in Malaysia’s promising growth prospects shown by esteemed German corporations like Infineon. The cutting-edge power semiconductor technologies produced in Infineon’s SiC Power Fab is a milestone development towards elevating Malaysia’s position in the semiconductor industry, while also fostering a partnership focused on creating a more sustainable future for our nation and the world”.
Commenting on Infineon Technologies’ monumental achievement, the Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), Datuk Wira Arham Abdul Rahman, expressed, “Infineon Technologies’ achievement in Malaysia is a source of great pride for MIDA. The company’s advanced manufacturing operations and continuous expansion in the country, along with its adoption of new digital capabilities, are truly commendable. MIDA reaffirms its commitment to facilitate industry players including Infineon Technologies to foster further growth in the electrical and electronics (E&E) industry. This investment reflects the nation’s commitment to fostering an inclusive and vibrant economy, generating various opportunities for local talents and industry supply chains.”
Jochen Hanebeck, CEO of Infineon, expressed appreciation to the Government of Malaysia, particularly MITI and MIDA, for their instrumental role in realising Infineon Technologies’ ambitious vision for significant expansion in Malaysia.
“The market for silicon carbide shows accelerating growth, not only in automotive but also in a broad range of industrial applications such as solar, energy storage and high- power EV charging. With the Kulim expansion, we will secure our leadership position in this market,” stated Jochen Hanebeck.
“With the industry’s leading scale and a unique cost position, we are leveraging our competitive position of best-in-class SiC trench technology, the broadest package portfolio and unrivaled application understanding. These factors are the areas of differentiation and success in the industry,” he added.
Malaysia assumes an important role in the global semiconductor supply chain ecosystem. Infineon Technologies’ further investments complement the National Investment Aspirations (NIA) and the New Industrial Master Plan 2030’s focus on attracting high-tech and high-value investments to support the country’s economic growth. The E&E industry is a significant catalyst for the Malaysian economy, playing a pivotal role in its growth and development, contributing nearly 7% of the country’s Gross Domestic Product (GDP). In the first quarter of 2023, the industry recorded RM2.06 billion worth of approved investments, initiated from 16 projects which would generate 1,729 higher-paying job opportunities. E&E exports for the same period were RM142 billion, a 3.3% increase compared to the corresponding period last year.