Recognising the rapid growth of power semiconductors driven by decarbonisation, particularly those based on wide bandgap materials, Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) (“Infineon”), a leader in Power Systems and IoT, is taking a significant step to shape the industry by expanding its Kulim 3 fab building on the investment announced in February 2022. Infineon will invest an additional RM30.1 billion (€5 billion) for Phase 2, on top of the original €2 billion for Phase 1, to construct the world’s largest 200-millimetre silicon carbide power fabrication plant. Both Phase 1 and Phase 2 will generate 900 and 600 high value jobs in Malaysia, respectively. In total, 4,000 jobs will be created. The Kulim 3 fab building incorporates advanced energy efficiency and sustainable practices.
The Minister of Investment, Trade and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul Aziz applauded Infineon’s decision to expand its presence in Malaysia, stating, “Infineon's world's largest 200mm silicon carbide (SiC) power fab being constructed in Malaysia highlights our nation’s growing credibility as a regional hub for cutting-edge technology and innovation in the semiconductor space. We warmly welcome long-term, committed partners like Infineon to, among others, enhance our economic complexity and push for net zero, as laid out in the New Industrial Master Plan 2030. Infineon’s additional RM30.1 billion investment in cutting-edge manufacturing technologies will not only drive innovation and our industrial reform agenda, but also create 1,500 high-skilled job opportunities for Malaysians. A robust industrial talent pipeline, ESG considerations and ecosystem development are key, and this is where our National Semiconductor Strategy will play its role towards attracting more high-quality investments that will drive Malaysia’s industrial reforms and sustainable growth.”
MIDA's Chief Executive Officer, Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, who attended the event, remarked, “Infineon’s expansion significantly strengthens Malaysia’s position in the global semiconductor supply chain. As decarbonisation gains pace, this investment highlights the Government’s dedication to green technologies and sustainable development, in line with the Green Investment Strategy (GIS). Infineon has been a key partner in these efforts, and their growth in Kulim is a major step for sustainable socio economic progress. By attracting foreign investments in green technology, we are enhancing our green investment ecosystem as well as the local supply chain. MIDA thanks Infineon for their innovative solutions and sustainability efforts, and we look forward to our continued partnership.”
“We have a clear vision at Infineon: Driving decarbonisation and digitalisation. Together. Infineon Kulim plays a significant role in fulfilling this vision”, said Jochen Hanebeck, CEO of Infineon Technologies AG at the opening ceremony. “When the second phase of the Kulim expansion is completed, this will be the largest and most competitive 200-millimeter silicon carbide power semiconductor fab in the world.” He added: “Today’s event is proof that we are not alone in our efforts to achieve a climate-neutral future. We have a strong network of customers, suppliers and partners that are working towards one common goal: We want to use innovative solutions to ensure that our planet remains a place worth living on.”
Malaysia assumes a pivotal role in the global semiconductor supply chain. In 2023, the electrical and electronics (E&E) industry secured RM85.4 billion in approved investments. E&E is the major contributor to the country’s GDP growth, and is the sixth (6th) largest semiconductor exporter with a 7.5% global market share, as well as 13% of the global share for chip assembly.
With one of the most diverse semiconductor sectors in the Asia Pacific, Malaysia has seen impressive growth. In the first quarter of 2024 alone, the industry attracted RM34.3 billion in approved investments from 34 projects, creating 6,221 new jobs. This development aligns with the National Semiconductor Strategy (NSS), which has set a bold target to attract at least RM500 billion in investment for the semiconductor industry, in the first phase of the plan.
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