Infineon inaugurates new SiC semiconductor production facility in Malaysia
The new chip factory located in Asia is intended to strengthen Infineon’s position as a leading supplier of power semiconductors. The first expansion phase of the factory, with an investment volume of two billion euros, will focus on the production of silicon carbide power semiconductors and will also include gallium nitride (GaN) epitaxy. In the second phase, the world’s largest and most efficient 200-millimetre ‘SiC Power Fab’ will be built with an investment volume of up to five billion euros, according to Infineon. The project will create up to 4,000 jobs in total.
The timing of the opening is a little awkward, as Infineon announced the reduction and relocation of a total of 2,800 jobs a few days ago. However, Infineon made the decision to expand its plant in Malaysia a long time ago and publicly announced it a year ago, so this is part of a larger strategic realignment.
Infineon has secured early customer commitments totalling around five billion euros for the ongoing expansion of the factory in Kulim and has received advance payments of around one billion euros from existing and new customers. The customer commitments come from six unspecified automotive manufacturers as well as customers from the renewable energy and industrial sectors. Based on previous statements by Infineon, the automotive customers are likely to be Ford, SAIC and Chery as well as Stellantis, Foxconn and VinFast.
“New generations of power semiconductors based on innovative technology such as silicon carbide are an absolute prerequisite to achieving decarbonization and climate protection. Our technology increases the energy efficiency of ubiquitous applications such as electric cars, solar and wind power systems and AI data centers. We are therefore investing in the largest and most efficient high-tech SiC production facility in Malaysia, backed by strong customer commitments,” said Jochen Hanebeck, CEO of Infineon. “Since the demand for semiconductors will constantly rise, the investment in Kulim is highly attractive to our customers, who are backing it with their prepayments. It also increases the resilience of the supply chain for critical components needed for the green transition.”
The Kulim 3 factory is powered by 100 per cent green electricity and uses the latest energy efficiency measures to support Infineon’s goal of becoming carbon neutral. To avoid emissions, Infineon plans to use a modern exhaust gas purification system and environmentally friendly refrigerants that combine high efficiency with a low global warming potential.
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