KUALA LUMPUR, August 4 – In response to the surging demand for power semiconductors driven by the decarbonization trend, Infineon Technologies AG is set to take a significant stride towards shaping the industry by expanding its Kulim fab in Malaysia. The company announced its ambitious plan to construct the world’s largest 200mm SiC (silicon carbide) Power Fab, backed by customer commitments and additional investments of up to €5 billion over the next five years.
Jochen Hanebeck, CEO of Infineon, emphasized the escalating growth of the silicon carbide market, particularly in automotive and various industrial applications like solar, energy storage, and high-power EV charging. He expressed confidence that the Kulim expansion would secure Infineon’s leadership position in this dynamic market. The Kulim fab expansion is expected to lead to an annual SiC revenue potential of about seven billion euros by the end of the decade. Infineon aims to achieve a SiC market share of 30% towards the end of the decade, making it a key player in the industry.
The company is also optimistic about surpassing its SiC revenue target of one billion euros by the fiscal year 2025. Infineon has garnered new design wins totaling around five billion euros and secured approximately one billion euros in prepayments from both existing and new customers. Notably, the company has partnered with renowned names such as Ford, SAIC, Chery, SolarEdge, and leading Chinese photovoltaic and energy storage systems companies.
The Right Honourable Dato’ Seri Anwar bin Ibrahim, Prime Minister of Malaysia, applauded Infineon’s commitment to creating a significant wide bandgap hub in the country, aligning with Malaysia’s national goal to decarbonize its economy and achieve net-zero emissions by 2050. The Minister of Investment, Trade, and Industry, His Hon. Tengku Datuk Seri Utama Zafrul Aziz, also lauded the expansion, recognizing its role in advancing Malaysia’s position in sustainable technologies.
Sustainability is a core element in the planning, construction, and operation of the fab. Infineon is dedicated to responsible resource management, incorporating designs that promote efficient electricity and water usage. The Kulim fab expansion not only strengthens Infineon’s global presence but also supports Malaysia’s economic growth and development, creating high-skilled employment opportunities and positioning the country as a frontrunner in driving green technologies.
This investment aligns with the National Investment Aspirations and New Industrial Master Plan 2030, fostering an inclusive and vibrant economy based on knowledge transfer, quality investments, and socio-economic well-being. Infineon’s vision for green technology and sustainability sets a positive tone for Malaysia’s development in the semiconductor industry and the sustainable technology supply chain. The company’s strategic investment showcases its confidence in Malaysia’s growth prospects and commitment to working towards a greener future.
