Infineon opens 200mm SiC power semiconductor fab in Malaysia

As global decarbonization efforts increase demand for power semiconductors, Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) officially opened the first phase of its 200-millimeter silicon carbide (SiC) power semiconductor fab in Malaysia on August 8, 2024. Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim and Chief Minister of Kedah YAB Dato’ Seri Haji Muhammad Sanusi Haji Mohd Nor joined Infineon CEO Jochen Hanebeck for the launch.

In the field of power electronics, the focus on efficiency has led to the development of wide-bandgap (WBG) semiconductors, based on materials like Silicon Carbide (SiC) and Gallium Nitride (GaN). These transistors are influencing power electronics and applications related to green and digital transformation. In Kulim, Malaysia, Infineon is expanding its capacity for wide-bandgap materials.

The first phase of the fab, with an investment of two billion euros, will focus on the production of silicon carbide power semiconductors and include gallium nitride (GaN) epitaxy. SiC semiconductors are used in high-power applications to improve efficiency and reduce size. These semiconductors are used in electric vehicles, fast charging stations, trains, renewable energy systems, and AI data centers. The first phase will create 900 jobs, and the second phase, with an investment of up to five billion euros, will further expand the fab and create up to 4,000 jobs, as claimed by the official statement.

“New generations of power semiconductors based on innovative technology such as silicon carbide are an absolute prerequisite to achieving decarbonization and climate protection. Our technology increases the energy efficiency of ubiquitous applications such as electric cars, solar and wind power systems and AI data centers. We are therefore investing in the largest and most efficient high-tech SiC production facility in Malaysia, backed by strong customer commitments,” said Jochen Hanebeck, CEO of Infineon Technologies AG. “Since the demand for semiconductors will constantly rise, the investment in Kulim is highly attractive to our customers, who are backing it with their prepayments. It also increases the resilience of the supply chain for critical components needed for the green transition.”

“Infineon’s remarkable project reinforces Malaysia’s position as a rising major global semiconductor hub” says Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim. “This major investment, which will locate the world’s largest and most competitive SiC power fab on our shores, will create jobs and opportunities, as well as attract suppliers, universities and top talent. Moreover, it will support Malaysia’s efforts to protect our climate by boosting electrification and increasing the efficiency of many applications, including electric cars and renewable energy. Thus, technology made in Malaysia will become a central part of global decarbonization efforts in the future.”

“Infineon’s deeply rooted presence in Kulim is a testament to the region’s potential as a hub for high-tech industries,” says Kedah Chief Minister YAB Muhammad Sanusi Md Nor. “This investment will not only create high-value job opportunities for the local community, it will also catalyze economic growth in the region. We are committed to continue providing top business conditions in Kedah and supporting Infineon’s efforts to establish a leading semiconductor facility in Kulim, which will have a positive ripple effect on the entire ecosystem.”

Infineon has secured design wins worth approximately five billion euros and received around one billion euros in prepayments from customers for the expansion of the Kulim 3 fab. These design wins include six OEMs in the automotive sector and customers in the renewable energy and industrial segments. Kulim 3 will be connected to Infineon’s site in Villach, Austria, the company’s competence center for power semiconductors. Infineon increased capacity for SiC and GaN power semiconductors in Villach in 2023. Both manufacturing sites will share technologies and processes, allowing for efficient operation. This will benefit Infineon’s customers with increased resilience and flexibility.

The expansion will benefit from the economies of scale achieved for 200-millimeter manufacturing in Kulim. It will complement Infineon’s position in silicon manufacturing based on 300-millimeter production in Villach and Dresden. This investment in wide-bandgap capacity in Kulim strengthens the local ecosystem and supports Malaysia’s semiconductor hub. Infineon has been operating in Malaysia since 1973 in Melaka and opened Asia’s first frontend fab in Kulim in 2006. Currently, Infineon employs more than 16,000 people in Malaysia.

The Kulim 3 fab will use green electricity and implement energy efficiency measures to support Infineon’s goal of carbon neutrality. Emissions will be minimized using an abatement system and green refrigerants with low global warming potential. Other sustainable operations measures include recycling of indirect materials and water efficiency and recycling processes. Infineon is working towards Green Building Index certification.