Multi-billion boost

Let's take pride in our recent successes and stand tall as a nation.

GETTING a German-based global semiconductor giant to invest more than RM24.9bil over the next five years in Malaysia is a big deal, but the company's expansion plans here have failed to generate the same excitement as the Tesla move.

A chip-making plant is perhaps not as sexy as an electric vehicle company owned by the world's richest man, Elok Musk.

Three weeks ago, Tesla announced that Malaysia had been picked to set up its South-East Asia headquarters.

But there's a difference: Infineon Technologies AG, which makes chips for cars and data centres, has put a definite figure to what it plans to do in Malaysia, which already has a staff of over 1,500 in its Kulim, Kedah, facility.

Infineon's decision to build the world's largest 200mm silicon carbide (SiC) power fabrication plant in Kulim surely deserves better news highlight and public awareness.

Reuters described the investments as "massive" and a "boost" to Malaysia, as order commitments for the purchase of chips, especially from China, are increasing.

The announcement was made just a few days ago and it shows Malaysia is steadily moving up the semiconductor industry value chain.

The Federal Government must be commended for clinching the deal as it will help boost Kulim as a centre for high-tech industry in East Asia, even if we're lagging behind Taiwan.

Over the last 48 hours, Datuk Seri Anwar Ibrahim has been making whistle stops in various Kedah districts.

On Saturday night, during his final stop in Baling, he spoke to a large ceramah crowd about the many investments that his Unity Government has brought to Malaysia, which will create thousands of jobs.

He defended the accusations by Kedah Mentri Besar Datuk Seri Mohamad Sanusi that the Federal Government had ignored and by-passed Kedah by asking investors to go to Penang, instead.

The Prime Minister said the Federal Government's initiative to convince Infineon to strengthen its commitment in Malaysia, particularly in Kulim, Kedah, should dispel such allegations.

Anwar had made the same pitch in his earlier ceramah rounds in Jitra and Alor Setar.

It's unclear how many of his listeners understood his implications because Kulim has now become a home for high-technology manufacturing.

After all, rhetoric, accusations, and controversies get better traction from a ceramah than talking about complicated technologies, even if it provides jobs and leads to other side business benefits.

Infineon chief executive officer Jochen Hanebeck reportedly said the market for SiC had shown 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 (EV) charging.

The Financial Times reported that the additional production capacity in Malaysia indicates the German chipmaker making a larger bet on the car industry's switch to electric vehicles.

It said its investment in its silicon carbon chip was "largely thanks to purchase commitments and prepayments from clients in the region, including Chinese carmakers SAIC and Cherry." Reuters reported the other customers include Solaredge and three leading Chinese photovoltaic manufacturers.

The UK business daily reported that Infineon generates roughly half of its revenue from serving automotive companies and is seeking to gain from the transition to EVs, which require more chips than those run by combustion engines.

The team at the Investment, Trade and Industry Ministry deserves to be commended for working hard to make this become a reality.

Many of us as Malaysians, can sometimes be too negative. We enjoy putting ourselves down.

But the two major investment news announcements, Tesla and Infineon, are indeed significant celebratory points for Malaysia.

The timing of this news, during the crucial six state elections, may be dismissed as a political opportunity, but in both cases, the investments prove actual work is being done to encourage the influx of investments.

These investments not only create high-skilled employment opportunities, but also positions Malaysia as a frontrunner in driving green technologies, a crucial aspect of achieving our global sustainable development goals.

It doesn't look like the PAS-held Kedah government is going to collapse anytime soon, but the truth is, a lot of work went on behind the scenes to ensure investments worth billions of ringgit pour into Malaysia.