German semiconductor firm Infineon invests almost RM25b in Malaysia, expands fab in Kulim

Infineon Technologies AG, Germany’s largest semiconductor manufacturer, has announced a new investment of EUR5 billion (~RM24.9 billion) into its semiconductor fab in Kulim, Kedah. This comes as part of its plan to take further steps in shaping the power semiconductor industry in a bid to secure their position in the market.

The Infineon plant in Kulim isn’t new of course, with Infineon having already invested EUR2 billion (~RM9.9 billion) into its Kulim plant just last year. With its new round of investment into Malaysia, Infineon’s Kulim plant will become the site of the world’s biggest 200mm silicon carbide (SiC) power fab. According to the German firm, this investment is backed by customer commitments totalling around EUR5 billion along with about EUR1 billion in pre-payments. The Kulim expansion will also be done in a way that allows Infineon to make responsible use of necessary resources such as water and electricity.

In total, Infineon expects this new expansion in Kulim to deliver an annual SiC revenue potential of approximately EUR7 billion by the end of the decade. Infineon has stated that among those backing the project include several automotive manufacturers such as Ford, SAIC and Chery as well as leading renewable energy companies such as SolarEdge.

The statement by Infineon also quotes Prime Minister Anwar Ibrahim, who had expressed his appreciation towards Infineon’s commitment into Malaysia.

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

In this vein, Infineon’s vision on green technology and sustainability puts it right at home in Malaysia. 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,” – Dato’ Seri Anwar Ibrahim, Prime Minister of Malaysia

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, also called Infineon’s investment into its Kulim plant a big vote of confidence in the current unity government. Zafrul noted that the investment will create high-skilled employment opportunities for Malaysians as well as position Malaysia as a frontrunner when it comes to green technologies.

“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.

We value the trust, confidence and recognition in Malaysia’s promising growth prospects shown by esteemed German corporations like Infineon,” – Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Investment, Trade and Industry

Zafrul also added that the technologies produced in Infineon’s Kulim plant is a milestone development that will elevate Malaysia’s position in the global semiconductor industry, as well as foster a partnership that can create a more sustainable future. Meanwhile, Infineon CEO Jochen Hanebeck also expressed his appreciation to the Malaysian government for their role in helping Infineon’s expansion plans in Malaysia.

According to the Malaysian Investment Development Authority (MIDA), Infineon’s continued investment into Malaysia will complement the National Investment Aspirations and the New Industrial Master Plan 2030, which places a great importance on attracting high tech and high value investments into Malaysia. The electrical and electronics industry already plays an important role in the Malaysian economy, contributing almost 7% of the Malaysian GDP.

[ SOURCE 2 ]