High-skilled employment opportunities among key wins of Infineon's upcoming Power Fab in Kulim: Tengku Zafrul

Prime Minister Anwar Ibrahim added that it is a "vote of confidence in Malaysia's new economic growth agenda premised on inclusivity and sustainability."

Infineon Technologies has announced its plans to build what is said to be the world's largest 200-mm SiC (silicon carbide) Power Fab in Kulim, Malaysia. 

The decision to increase Infineon's investment in Malaysia came about following a meeting between Prime Minister Anwar Ibrahim, Infineon's Chief Operations Officer Dr. Rutger Wijburg, and Minister of Investment, Trade and Industry, Tengku Datuk Seri Utama Zafrul Abdul Aziz on 24 July 2023.

Keeping sustainability as a key element in the planning, construction and operation of the fab, the building is designed in a way that allows Infineon to make responsible use of resources such as electricity and water, the company said in a statement.

Commenting on the expansion, Tengku Zafrul said: "Infineon’s expansion of their world-class silicon carbide facility in Kulim marks a significant milestone in Malaysia's pursuit of developing advanced manufacturing capabilities, creating high-skilled employment opportunities and positioning the country at the forefront of enabling green technologies, which are crucial to achieving our global sustainable development goals."

The expansion is being funded by customer commitments, totalling approximately 5bn euros for new design-wins in automotive and industrial applications, along with about 1bn euros in prepayments. This would include six original equipment manufacturers (OEMs) in the automotive sector — three of them from China.

Infineon shared that this customer base includes Ford, SAIC, and Chery. Meanwhile, customers in renewable energies include SolarEdge and three Chinese photovoltaic and energy storage systems companies. Lastly, the company shared that it has, together with Schneider Electric, agreed on a capacity reservation including prepayments for power products based on silicon and silicon carbide. The prepayments will contribute to Infineon’s cash flow in the coming years and shall be fully repaid in connection with the agreed sales volumes by 2030 at the latest.

Over the next five years, Infineon will continue investing up to an additional 5bn euros in Kulim during a second construction phase for Module Three. Per the statement, this investment is expected to generate an annual SiC revenue potential of about 7bn euros by the end of the decade, along with the planned 200-mmr SiC conversion of Villach and Kulim. This manufacturing base will support Infineon in reaching its SiC market share target of 30% towards the end of the decade. It is projected that the company’s SiC revenue in the fiscal year 2025 will come in ahead of the target of 1bn euros.

Prime Minister Anwar shared his views: "Infineon and other well-established German corporations’ continued faith in Malaysia is a vote of confidence in Malaysia's new economic growth agenda premised on inclusivity and sustainability, enabled by strong policies on knowledge transfer, quality investments, business enablement and socio-economic wellbeing based on equitable sharing of the nation’s wealth."

Lead image / Minister of Investment, Trade and Industry, Tengku Datuk Seri Utama Zafrul Abdul Aziz Facebook