The global push for low carbonization has boosted the market demand for power semiconductors. In line with this trend, Infineon Technologies AG recently announced that the first phase of its new wafer fab in Malaysia has officially started operations. After completion, the plant will become the world's largest and most competitive 200mm silicon carbide power semiconductor wafer fab. Malaysian Prime Minister Dato' Seri Anwar Ibrahim, Kedah State Minister Dato' Seri Mohamad Sanusi and Infineon Technologies CEO Jochen Hanebeck attended the production and operation launch ceremony of the first phase of the new wafer fab.
This efficient 200mm silicon carbide power semiconductor wafer fab will further consolidate and enhance Infineon's position as a global leader in power semiconductors. The first phase of the plant, with an investment of up to 2 billion euros, will focus on the production of silicon carbide power semiconductors and cover the production of gallium nitride epitaxy. Silicon carbide power semiconductors have brought revolutionary changes to high-power applications due to their ability to achieve more efficient power conversion and more miniaturized design. The use of silicon carbide power semiconductors can significantly improve energy efficiency in applications such as electric vehicles, fast charging stations and trains, as well as renewable energy power systems and AI data centers. The first phase of the new wafer fab will create 900 high-value jobs, and the second phase of the project will invest up to 5 billion euros to build the world's largest and most efficient 200mm silicon carbide power semiconductor wafer fab. Overall, the new wafer fab will create up to 4,000 jobs.
Jochen, CEO of Infineon Technologies Hanebeck said: "The adoption of new generation power semiconductors based on innovative technologies such as silicon carbide is a prerequisite for decarbonization and climate protection. Our technology can improve the energy efficiency of various applications that are already very common, such as electric vehicles, solar and wind power generation systems, AI data centers. Therefore, we are investing in the world's largest and most efficient high-tech silicon carbide production manufacturing plant in Malaysia, backed by strong customer commitments. As the market demand for semiconductors will continue to grow, the investment in Kulim is very attractive to our customers, who also support this investment by providing advance payments. In addition, this investment project by Infineon will also increase the supply chain resilience of key components required for the green and low-carbon transition."
Malaysian Prime Minister Dato' Seri Anwar Ibrahim said: "Infineon's project has attracted much attention and also strengthens Malaysia's growing position as an important hub in the global semiconductor industry chain. This important investment will create a global The largest and most competitive silicon carbide power semiconductor wafer fab will be built in Kulim, creating jobs and business opportunities, attracting suppliers, universities and top talents. In addition, the project will support Malaysia's efforts in climate protection by promoting electrification, improving the energy efficiency of many applications such as electric vehicles and renewable energy. Therefore, technology made in Malaysia will become an important part of the future global low-carbonization process. "
Kedah State Minister Datuk Seri Mohamad Sanusi said: "Infineon's roots and growth in Kulim prove the important potential of the region as a high-tech industrial center. This investment will not only create high-value jobs for the local community, but also promote regional economic growth. We are committed to continue to create a first-class business environment in Kedah and support Infineon's construction of a leading semiconductor factory in Kulim, which will bring positive chain reactions to the entire industrial ecosystem. "
The third plant of Infineon's Kulim plant, which is under continuous expansion, has won design orders with a total value of approximately EUR 5 billion and received advance payments of approximately EUR 1 billion from new and old customers. It is worth mentioning that these design orders come from customers in different industries, including six OEMs in the automotive industry and customers in the renewable energy and industrial fields.
Infineon's third plant in Kulim will be closely connected to Infineon's production base in Villach, Austria, which is the global competence center of Infineon's power semiconductors. Infineon has increased the production capacity of silicon carbide and gallium nitride power semiconductors in Villach in 2023. The two production bases are closely integrated, actually forming a "virtual collaborative factory" focusing on wide bandgap technology, which can share technology and processes, and thus achieve rapid mass production and smooth and efficient operation. The project is also highly resilient and flexible, and Infineon's customers will ultimately benefit.
The huge economies of scale achieved by the Kulim plant in 200mm wafer production have laid a good foundation for this expansion. Infineon's 300mm wafer plants in Villach and Dresden have established the company's leading position in the semiconductor market, and the investment and expansion of the Kulim plant will further consolidate and enhance this leading position. Infineon is strengthening its technological leadership in silicon as well as the entire power semiconductor field, including silicon carbide and gallium nitride. In addition, Infineon's investment in expanding the production capacity of wide bandgap semiconductors in Kulim will help strengthen the local industrial ecosystem and prove that Infineon is a reliable partner for Malaysia, an emerging semiconductor center. As early as 1973, Infineon entered the Malaysian market with business operations in Malacca. In 2006, Infineon opened Asia's first front-end wafer fab in Kulim. At present, Infineon has more than 16,000 highly skilled employees in Malaysia.
Infineon's Kulim Plant 3 will use 100% green electricity and will use the latest energy-saving measures to help Infineon achieve its carbon neutrality goals. To avoid carbon emissions, Infineon will use the most advanced emission reduction systems and green refrigerants that are both energy-efficient and have a very low global warming potential. In addition, Infineon will take other measures to ensure sustainable operations, including the use of the most advanced indirect material recovery processes and the most advanced water resource efficiency and recycling processes. Infineon is currently working towards obtaining the prestigious Green Building Index certification.