04/08/2023 (Kuala Lumpur, Malaysia) - Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY), a global leader in power systems, has announced a significant expansion of its Kulim fab, in a move that underscores the company's commitment to shaping the power semiconductor industry. The expansion, which comes in response to the rapid growth of power semiconductors driven by decarbonisation, will see the construction of the world's largest 200mm SiC (silicon carbide) Power Fab.
The German-based company plans to invest an additional €5 billion over the next five years in Kulim, marking the second phase of the construction of module 3. This comes on top of the original investment announced in February 2022.
The Minister of Investment, Trade and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul Aziz, hailed the expansion as a significant milestone for Malaysia. "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," he said.
The Minister further noted that the expansion would create high-skilled employment opportunities and position Malaysia as a frontrunner in driving green technologies, a crucial aspect of achieving global sustainable development goals.
Datuk Wira Arham Abdul Rahman, CEO of the Malaysian Investment Development Authority (MIDA), lauded Infineon Technologies' achievement. "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," he said.
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 Hanebeck.
Infineon's further investments align with 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, 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.