Infineon to Invest Additional RM30b to Expand Kulim Facility

German semiconductor giant Infineon Technologies AG will invest an additional €5 billion (RM30.1 billion) in constructing the world’s largest 200-millimetre silicon carbide power fabrication plant in Kedah.

The investment is for the second phase, on top of the original €2 billion for the first phase, according to a statement from the Malaysian Investment Development Authority (Mida). The two phases to expand its Kulim 3 fab building will together generate 1,500 jobs in Malaysia, the agency said. 

The plant located in Kulim High Tech Park is slated to be the largest 200-millimetre front-end manufacturing site for Infineon, focusing on automotive, green industrial power and power, and sensor systems.

According to Mida, Infineon transferred its silicon carbide and gallium nitride epitaxy production to Kulim Hi-Tech Park and expanded its manufacturing base. This would lead to an annual revenue potential of about €7 billion for the global semiconductor company by the end of the decade.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the construction of the world’s largest 200-millimetre silicon carbide power fabrication plant in Malaysia highlights the 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.  

Meanwhile, Mida chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said the expansion significantly strengthens Malaysia’s position in the global semiconductor supply chain.  

“As decarbonisation gains pace, this investment highlights the government’s dedication to green technologies and sustainable development, in line with the Green Investment Strategy (GIS),” Shamsul said.