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Infineon's RM25 bil investment signals trust in Madani govt | Scoop
Infineon's expansion plan for its Kulim facility aims to establish the world's largest silicon carbide power fabrication plant, propelling the company's SiC revenue potential to around €7 billion by the end of the decade. – Anwar Ibrahim Facebook pic, August 3, 2023
News

Infineon’s RM25 bil investment signals trust in Madani govt

Firm to expand Kedah’s Kulim facility, creating world's largest silicon carbide power fabrication plant

Bernama
Updated
9:18 PM MYT

 

KUALA LUMPUR – Global semiconductor company Infineon Technologies AG has announced the expansion of its Kulim facility to build the world’s largest 200mm silicon carbide (SiC) power fabrication (power fab) plant, with an additional investment of up to €5 billion (RM25 billion) over the next five years.

It said the investment will lead to an annual SiC revenue potential of about €7 billion by the end of the decade, together with the planned 200mm SiC conversion of Villach, Austria, and Kulim, Kedah.

“This highly competitive manufacturing base will support Infineon’s SiC market share target of 30% towards the end of the decade,” the company said in a statement today.

According to the statement, Prime Minister Datuk Seri Anwar Ibrahim expressed his appreciation for Infineon’s commitment to creating a significant wide bandgap hub in the country.

“Malaysia’s continued appeal as a preferred investment destination comes with a well-established landscape for developing innovative and sustainable technologies.

“Infineon and other well-established German corporations’ continued faith in Malaysia is a vote of confidence in Malaysia’s new economic growth agenda premised on inclusivity and sustainability, enabled by strong policies on knowledge transfer, quality investments, business enablement, and socio-economic well-being based on equitable sharing of the nation’s wealth,” he said.

Infineon chief executive officer Jochen Hanebeck said the market for SiC shows accelerating growth, not only in automotive but also in a broad range of industrial applications such as solar, energy storage, and high-power electric vehicle charging.

“With the Kulim expansion, we will secure our leadership position in this market.

“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 unrivalled application understanding,” he said.

Meanwhile, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku  Abdul Aziz described Infineon’s additional investment in Kulim as a strong vote of confidence in the Madani government’s investment policies.

“This expansion will not only create high-skilled employment opportunities but also position Malaysia as a frontrunner in driving green technologies, a crucial aspect of achieving global sustainable development goals.

“We value the trust, confidence, and recognition of 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 are 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,” he said separately in a joint statement by the Malaysian Investment Development Authority and Infineon. – August 3, 2023

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