Infineon opens the world’s largest and most efficient SiC power semiconductor fab in Malaysia

• Malaysia’s Prime Minister and the Chief Minister of Kedah join Infineon management to officially inaugurate the first phase.
• New fab strengthens Infineon’s role as the global leader in power semiconductors.
• Ongoing expansion is backed by strong customer commitments and significant design-wins.
• Kulim fab operates on 100% green electricity and implements advanced energy efficiency and sustainable practices.

Kulim, Malaysia – 8 August 2024 – As global decarbonization efforts drive demand for power semiconductors, Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY)  has officially opened the first phase of a new fab in Malaysia that will become the world’s largest and most competitive 200-millimeter silicon carbide (SiC) power semiconductor fab. Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim and Chief Minister of the state of Kedah YAB Dato’ Seri Haji Muhammad Sanusi Haji Mohd Nor joined Infineon CEO Jochen Hanebeck, to symbolically launch production.

The highly efficient 200-millimeter SiC power fab will strengthen Infineon’s role as the global leader in power semiconductors. The first phase of the fab, with an investment volume of two billion euros, will focus on the production of silicon carbide power semiconductors and will include gallium nitride (GaN) epitaxy. SiC semiconductors have revolutionized high-power applications because they switch electricity even more efficiently and enable even smaller designs. SiC semiconductors increase efficiency in electric vehicles, fast charging stations and trains as well as renewable energy systems and AI data centers. 900 high-value jobs will be created already in the first phase. The second phase, with an investment of up to five billion euros, will create the world’s largest and most efficient 200-millimeter SiC power fab. Overall, up to 4.000 jobs will be created with the project.

“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 with a total value of approximately five billion euros and has received approximately one billion euros in prepayments from existing and new customers for the ongoing expansion of the Kulim 3 fab. Notably, these design wins include six OEMs in the automotive sector as well as customers in the renewable energy and industrial segments.

Kulim 3 will be closely connected to the Infineon site in Villach, Austria, Infineon’s global competence center for power semiconductors. Infineon already increased capacity for SiC and GaN power semiconductors in Villach in 2023. As “One Virtual Fab” for wide-bandgap technologies, both manufacturing sites now share technologies and processes which allow for fast ramping and smooth and highly efficient operation. The project also offers a high grade of resilience and flexibility, which will ultimately benefit Infineon’s customers.

The expansion will benefit from the excellent economies of scale already achieved for 200-millimeter manufacturing in Kulim. It will complement Infineon’s leading position in silicon, based on 300-millimeter manufacturing in Villach and Dresden. Thus, Infineon is strengthening its technological leadership across the entire spectrum of power semiconductors, in silicon as well as SiC and GaN. In addition, the investment in wide-bandgap capacity in Kulim strengthens the local ecosystem and proves that Infineon is a reliable partner within the growing semiconductor hub Malaysia. Infineon’s operations in Malaysia started as early as 1973 in Melaka. In 2006, the company opened Asia’s first frontend fab in Kulim. Currently, Infineon employs more than 16.000 highly skilled people in Malaysia.

The Kulim 3 fab will be powered by 100% green electricity and will employ the latest energy efficiency measures to support Infineon’s goal of carbon neutrality. To avoid emissions, Infineon will use a state-of-the-art abatement system and green refrigerants that combine high efficiency with extremely low global warming potential. Other measures to ensure sustainable operations include state-of-the-art recycling of indirect materials and state-of-the-art water efficiency and recycling processes. Infineon is working towards recognition with the renowned Green Building Index certification.

Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The company has around 58,600 employees worldwide and generated revenue of about €16.3 billion in the 2023 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).

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