German semiconductor company Infineon Technologies is set to invest an additional EUR5 billion (~RM30 billion) in constructing the world’s largest 200-millimetre silicon carbide power fabrication plant in Kedah, Malaysia. This new investment marks the second phase of the project, following an initial investment of EUR2 billion (~RM9.4 billion), according to the Malaysian Investment Development Authority (MIDA).
The plant, situated in the Kulim High Tech Park will focus on automotive, green industrial power, and sensor systems. MIDA highlighted that Infineon has transferred its silicon carbide and gallium nitride epitaxy production to this location, further expanding its manufacturing capabilities. This is anticipated to generate an annual revenue potential of around EUR7 billion (~RM32.9 billion) for Infineon by the end of the decade.
Minister of investment, trade, and industry Tengku Datuk Seri Zafrul Abdul Aziz welcomed Infineon’s long-term commitment to Malaysia, noting that such investments align with the nation’s goals for economic complexity and sustainability as outlined in the New Industrial Master Plan 2030. Meanwhile, MIDA CEO Sikh Shamsul Ibrahim Sikh Abdul Majid stated that the expansion significantly bolsters the country’s position in the global semiconductor supply chain.
Prime Minister Datuk Seri Anwar Ibrahim, who was also present during the opening of the first phase of Infineon’s 200-millimetre silicon carbide fabrication plant, said the facility will showcase Malaysia globally in attracting investments. He added that its future expansion into the world’s largest power fab alone is a major selling point.
Overall, Infineon’s substantial investment in Kedah not only promises to enhance the local economy through job creation and increased revenue potential, but also positions Malaysia as a key player in the global semiconductor market. Further, the combined phases of the upcoming expansion at the Kulim 3 fabrication plant is expected to create 1,500 jobs in the country.
