Infineon lays foundation of its over US$1.8bil state-of-art wafer fab in Malaysia

• Infineon’s 3rd facility at Kulim Hi-Tech Park to create 900 high value jobs
• Add capacity in power semiconductors based on silicon carbide & gallium nitride

[Ed: Headline edited on Infineon's request to reflect the correct investment amount.]

German semiconductor solutions company, Infineon Technologies AG marked a momentous milestone in the construction of a new state-of-the-art wafer fab module, its third in Kulim, Malaysia, with the foundation stone laying ceremony today.

Held at its Kulim Hi-Teck Park (KHTP) location located unit, Infineon Technologies (Kulim) Sdn Bhd, the third module will add significant manufacturing capacity in power semiconductors, particularly wide bandgap technology based on silicon carbide and gallium nitride.

At an investment of more than US$1.8 billion (RM8 billion), construction is expected to be completed by third quarter of 2024 while creating an estimated 900 high value jobs.

[Ed: DNA initially cited US$2 billion (RM8.85billion) as per the Infineon release on its corporate website but Infineon updated us on July 9 with the correct investment figure.]

The guest-of-honour Muhammad Sanusi, Chief Minister of Kedah officiated the ceremony, accompanied by Ng Kok Tiong, Senior Vice President and Managing Director of Infineon Technologies Kulim, Lim Bee Vian, Deputy Chief Executive Officer (Investment Development) of the Malaysian Investment Development Authority (MIDA), Kam Ai Mei, Chief Financial Officer, Infineon Technologies (Kulim) and Dr Raj Kumar, Vice President of Technology, Infineon Technologies (Kulim).

“I am pleased that Infineon, who has a long-term presence in Kedah, continues to expand in the Kulim Hi-Tech Park. Since KHTP’s establishment in 1996, the number of capital-intensive high-tech manufacturing companies have steadily grown bringing advanced technologies and R&D activities as well as high tech jobs to Kedah and creating a vibrant economy for the local community. We will endeavor to continue this virtuous cycle,” said Muhammad Sanusi.

“Malaysia is an important hub for Infineon due to economies of scale already present in our front-end wafer fab manufacturing in Kulim, and back-end chip manufacturing in Melaka. When fully equipped, products from the new module will generate additional €2 billion (RM9 bil) in annual revenue. As decarbonisation efforts gain momentum globally, demand from electric vehicles, charging and storage infrastructures, and renewable energy for wide band gap power semiconductors is growing and we are prepared to support the demand,” said Dr Rutger Wijburg, Chief Operations Officer, Infineon Technologies AG.

According to MIDA’s Lim, “We are fortunate to have long-term and committed industry partners including Infineon, which have been instrumental to bringing growth in Malaysia's semiconductor industry. As we revel in the announcement for the third facility today to increase the wafer fabrication of wide bandgap semiconductors, I am pleased to note that Infineon Kulim’s third module will be instrumental in increasing Malaysia's position in the global semiconductor supply chain.”

Stating that the collective aim was to establish Malaysia as one of the key partners in the global semiconductor supply chain, Lim said, “Having like-minded global partners like Infineon will strengthen our position in global value chains and our goal to be an advanced manufacturing base in the region, driven by innovation. We are committed to supporting industry leaders like Infineon and we appreciate the trust and commitment you have shown throughout your valued presence in Malaysia.”

Ng thanked Infineon Kulim staff for their commitment towards the success of the company and expressed his gratitude to the Kedah State, MIDA and Malaysia government for its strong support. “Malaysia offers a bright and highly motivated talent pool that we can further invest in and grow via on-the-job training and competency development. Bringing new technology to Malaysia requires skills to manage complexity and experience to master the technology. The new module will create 900 high-value job opportunities adding to the existing employees at Infineon Kulim.”

The electrical and electronics (E&E) industry contributes significantly to Malaysia's GDP growth, export earnings, investment and employment and plays a vital role in the country's industrial development. In the first quarter of 2022 alone, Malaysia attracted a total of US$4.4 billion in approved investments for the E&E industry, among the top performing industries in January to March 2022 for the manufacturing sector.

[RM1 = US$0.226]