Kulim will be home to world’s biggest 200mm SiC power fab plant - MIDA | Malaysian Investment Development Authority
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Kulim will be home to world’s biggest 200mm SiC power fab plant

Kulim will be home to world’s biggest 200mm SiC power fab plant

08 Aug 2024

Recognising the rapid growth of power semiconductors driven by decarbonisation, particularly those based on wide bandgap materials, Germany’s Infineon Technologies AG, a leader in power systems and Internet of Things, is taking a significant step to shape the industry by expanding its Kulim 3 fabrication facility on top of the investment announced in February 2022.

Infineon will invest an additional €5 billion (RM24.5 billion) for Phase 2 of the facility in Kulim High Tech Park, Kedah, on top of the original €2 billion for Phase 1, to construct the world’s largest 200mm silicon carbide (SiC) power fabrication plant.

Prime Minister Datuk Seri Anwar Ibrahim today opened the first phase of Infineon’s new power fabrication plant in the high tech park.

Phase 1 and Phase 2 will generate 900 and 600 high-value jobs in Malaysia, respectively. In total, 4,000 jobs will be created. The Kulim 3 fab building incorporates advanced energy efficiency and sustainable practices.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz applauded Infineon’s decision to expand its presence in Malaysia stating, “Infineon’s world’s largest 200mm 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.

“We warmly welcome long-term, committed partners like Infineon to, among others, enhance our economic complexity and push for net zero, as laid out in the New Industrial Master Plan 2030.”

He added that Infineon’s additional RM24.5 billion investment in cutting-edge manufacturing technologies will not only drive innovation and Malaysia’s 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,” said Tengku Zafrul.

Malaysian Investment Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul Majid, who attended the event, remarked, “Infineon’s expansion significantly strengthens Malaysia’s position in the global semiconductor supply chain. As decarbon-isation gains pace, this investment highlights the government’s dedication to green technologies and sustainable development, in line with the Green Investment Strategy.”

He said Infineon has been a key partner in these efforts, and its growth in Kulim is a major step for sustainable socio economic progress.

Infineon Technologies CEO Jochen Hanebeck said, “We have a clear vision at Infineon – driving decarbonisation and digitalisation.

“Together. Infineon Kulim plays a significant role in fulfilling this vision. 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.”

Malaysia assumes a pivotal role in the global semiconductor supply chain. In 2023, the electrical and electronics (E&E) industry secured RM85.4 billion in approved investments. E&E is the major contributor to the country’s gross domestic product growth, and is the sixth largest semiconductor exporter with a 7.5% global market share, as well as 13% of the global share for chip assembly.

Source: The Sun

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