Infineon marks new milestone with the third wafer fab module in Kulim

KUALA LUMPUR, July 8 (Bernama) -- Infineon Technologies (Kulim) Sdn Bhd, Germany’s global semiconductor producer, announced RM8 billion worth of investment in the construction of its third wafer fabrication (fab) module which will add significant manufacturing capacity in power semiconductors.

Malaysia Investment Development Authority (MIDA) said in a statement that the wide bandgap technology is based on silicon carbide and gallium nitride. Construction is expected to be completed by the third quarter of 2024 in Kulim, Kedah.

Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor is pleased that Infineon would continue its expansion in the Kulim Hi-Tech Park (KHTP).

“The number of capital-intensive high-tech manufacturing companies at KHTP has steadily grown, bringing advanced technologies and research and development (R&D) activities as well as high-tech jobs to Kedah thus creating a vibrant economy for the local community,” he said in a statement today.

Infineon Technologies AG chief operations officer Dr Rutger Wijburg said Malaysia is an important hub for Infineon due to the economies of scale presented in its front-end wafer fab manufacturing in Kulim and back-end chip manufacturing in Melaka.

“When fully equipped, products from the new module will generate an additional 2 billion euro (1 euro = RM4.47) 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,” he added.

In the same statement, MIDA deputy chief executive officer (investment development) Lim Bee Vian said the long-term industry partner has been instrumental in bringing growth to Malaysia’s semiconductor industry. 

“With this announcement, it will increase Malaysia’s position in the global semiconductor supply chain and strengthen our position in the global value chains as well as to be an advanced manufacturing base in the region,” she said.

Meanwhile, Infineon senior vice-president and managing director Ng Kok Tiong said that bringing new technology to Malaysia requires skills to manage the complexity and experience to master the technology and the new model will create 900 high-value job opportunities.

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 addition, in the first quarter of 2022 Malaysia attracted a total of RM18.6 billion in approved investments for the E&E industry.

-- BERNAMA