Infineon Technologies AG has taken a significant step in its global leadership in power semiconductors with the official opening of the first phase of its new factory in Malaysia. This facility will become the largest and most competitive 200-millimeter silicon carbide (SiC) semiconductor factory in the world. The inauguration was attended by the Prime Minister of Malaysia, YAB Dato’ Seri Anwar Ibrahim, and the Chief Minister of the state of Kedah, YAB Dato’ Seri Haji Muhammad Sanusi Haji Mohd Nor, along with Infineon CEO Jochen Hanebeck.
A boost to global energy efficiency
The new Kulim factory will strengthen Infineon’s role as a global leader in power semiconductors, essential for high-power applications such as electric vehicles, fast charging stations, trains, renewable energy systems, and AI data centers. The first phase of the factory, with an investment of two billion euros, will focus on producing SiC semiconductors and gallium nitride (GaN) epitaxy. 900 high-value jobs will be created in this initial phase, and in the second phase, with an investment of up to five billion euros, up to 4,000 additional jobs will be created.
Jochen Hanebeck emphasized the importance of this technology for decarbonization and climate protection. “Our technology enhances the energy efficiency of ubiquitous applications like electric cars, solar and wind power systems, and AI data centers. That’s why we are investing in Malaysia’s largest and most efficient high-tech SiC production facility, supported by strong customer commitments,” he noted.
Commitment to sustainability
The Kulim factory will operate on 100% green electricity and implement advanced energy efficiency and sustainability practices. Infineon will utilize state-of-the-art abatement systems and eco-friendly refrigerants to minimize emissions. Additionally, advanced indirect material recycling processes and water efficiency will be carried out to ensure sustainable operations. The company aims to obtain Green Building Index certification, recognizing its sustainability efforts.
Government support and job creation
Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim highlighted the positive impact of this project for the country. “This significant project reinforces Malaysia’s position as a growing global semiconductor hub. It will create jobs and opportunities, and attract suppliers, universities, and top talent,” he stated. Kedah Chief Minister YAB Muhammad Sanusi Md Nor, meanwhile, emphasized that the investment will catalyze economic growth in the region and create high-value jobs for the local community.
Resilience and expansion
Infineon has secured design commitments worth approximately five billion euros and has received around one billion euros in customer prepayments for the expansion of the Kulim 3 factory. The factory will be closely connected to Infineon’s site in Villach, Austria, forming a “One Virtual Fab” for broadband technologies that will share technologies and processes for fast and efficient operation.
The expansion in Kulim will complement Infineon’s leading position in silicon semiconductor manufacturing and strengthen its technological leadership across the power semiconductor spectrum. The investment will also enhance the local ecosystem and demonstrate Infineon’s commitment as a trusted partner in Malaysia’s growing semiconductor hub.
Conclusion
The opening of Infineon’s SiC factory in Malaysia represents a significant advancement in the semiconductor industry, not only for its scale and efficiency but also for its commitment to sustainability. With the support of the Malaysian government and the creation of thousands of jobs, this initiative will not only strengthen Infineon’s position in the global market but also contribute to global decarbonization and climate protection efforts.