Infineon Technologies AG, a Germany-based power systems and internet of things (IoT) firm, has on Thursday opened the world’s largest, resource-efficient 200-millimetre silicon carbide (SiC) power semiconductor fab in Kulim, Malaysia.

The Malaysian Investment Development Authority (MIDA) said in a statement that recognizing the rapid growth of power semiconductors driven by decarbonization, particularly those based on wide bandgap materials, Infineon is taking a significant step to shape the industry by expanding its Kulim 3 fab building on the investment announced in February 2022.

According to the statement, Infineon will invest an additional MYR 30.1 billion ($6.73 billion) for Phase 2, on top of the original €2 billion ($2.19 billion) for Phase 1, to construct the silicon carbide power fabrication plant.

Both Phase 1 and Phase 2 will generate 900 and 600 high value jobs in Malaysia, respectively. In total, 4,000 jobs will be created.

The Kulim 3 fab building also incorporates advanced energy efficiency and sustainable practices.

“We have a clear vision at Infineon: driving decarbonization and digitalization. Together. Infineon Kulim plays a significant role in fulfilling this vision,” Infineon Technologies AG Chief Executive Officer Jochen Hanebeck said in the opening ceremony on Thursday.

According to him, when the second phase of the Kulim expansion is completed, this will be the largest and most competitive 200-millimeter silicon carbide power semiconductor fab in the world.

“Today’s event is proof that we are not alone in our efforts to achieve a climate-neutral future,

“We have a strong network of customers, suppliers and partners that are working towards one common goal: We want to use innovative solutions to ensure that our planet remains a place worth living on,” he added.

The Minister of Investment, Trade and Industry (MITI) of Malaysia Tengku Zafrul Aziz said Infineon’s world’s largest 200mm silicon carbide (SiC) power fab being constructed in Malaysia highlights Malaysia’s growing credibility as a regional hub for cutting-edge technology and innovation in the semiconductor space.

“We warmly welcome long-term, committed partners like Infineon to, among others, enhance our economic complexity and push for net zero, as laid out in the New Industrial Master Plan 2030,” he said.

According to him, Infineon’s additional investment in cutting-edge manufacturing technologies will not only drive innovation and the country’s industrial reform agenda, but also create 1,500 high-skilled job opportunities for Malaysians.

“A robust industrial talent pipeline, environmental, social, and governance (ESG) considerations and ecosystem development are key, and this is where our National Semiconductor Strategy will play its role towards attracting more high-quality investments that will drive Malaysia’s industrial reforms and sustainable growth,” he added.

Meanwhile, MIDA’s Chief Executive Officer Sikh Shamsul Ibrahim Sikh Abdul Majid said Infineon’s expansion significantly strengthens Malaysia’s position in the global semiconductor supply chain.

“As decarbonization gains pace, this investment highlights the Government’s dedication to green technologies and sustainable development, in line with the Green Investment Strategy (GIS),” he said.

He also said Infineon has been a key partner in these efforts, and their growth in Kulim is a major step for sustainable socio-economic progress.

“By attracting foreign investments in green technology, we are enhancing our green investment ecosystem as well as the local supply chain,” he added.

MIDA also noted Malaysia assumes a pivotal role in the global semiconductor supply chain.

In 2023, the electrical and electronics (E&E) industry secured MYR 85.4 billion ($19.09 billion) in approved investments.

It is noted that E&E is the major contributor to Malaysia’s gross domestic product (GDP) growth, and is the sixth (6th) largest semiconductor exporter with a 7.5 percent global market share, as well as 13 percent of the global share for chip assembly.

With one of the most diverse semiconductor sectors in the Asia Pacific, it said Malaysia has seen impressive growth.

It is noted in the first quarter of 2024 alone, the industry attracted MYR 34.3 billion ($7.67 billion) in approved investments from 34 projects, creating 6,221 new jobs.

This development aligns with Malaysia’s National Semiconductor Strategy (NSS), which has set a bold target to attract at least MYR 500 billion ($111.75 billion) in investment for the semiconductor industry, in the first phase of the plan.

Germany’s Infineon invests up to $5.46B to build largest 200-millimeter SiC Power Fab in Malaysia