Infineon’s €7bil Kulim SiC power fab to create 1,500 high-value jobs


German chip manufacturer Infineon wants to build chips to be embedded in locks for bikes, doors, lockers and office drawers that can be unlocked by a smartphone and without a battery. — dpa

KUALA LUMPUR: Infineon Technologies AG is expanding its Kulim 3 fab to address the rapid growth in power semiconductors driven by decarbonisation and wide bandgap materials.

The leader in power systems and IoT will be investing an additional RM30.1bil (€5 billion) for Phase 2, following the €2 billion Phase 1 investment announced in February 2022.

This expansion will create the world's largest 200mm silicon carbide power fabrication plant, generating 900 jobs in Phase 1 and 600 in Phase 2, totalling 4,000 jobs. The Kulim 3 fab will feature advanced energy efficiency and sustainable practices, the Malaysian Investment Development Authority (MIDA) said in a statement.

“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,” Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said.

“Infineon’s additional RM30.1bil 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,” Tengku Zafrul said.

MIDA chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said 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.”

Meanwhile, Infineon Technologies CEO Jochen Hanebeck said: “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.”

“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.”

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Infineon , Kulim , semiconductor , investment

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