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© Infineon Components | February 17, 2022

Infineon to invest €2 billion in a new Malaysia frontend fab

The German semiconductor company is looking to fortify its position in power semiconductors by adding significant manufacturing capacities in the field of wide bandgap (SiC and GaN) semiconductors. The company is investing more than EUR 2 billion to build a third module at its site in Kulim, Malaysia.

Updated; February 17, 2022 5:56 PM

Once fully equipped, Infineon says that the new module will generate EUR 2 billion in additional annual revenue with products based on silicon carbide and gallium nitride.

“Innovative technologies and the use of green electrical energy are key in reducing carbon emissions. Renewable energies and electro-mobility are major drivers for a strong and sustainable rise in power semiconductor demand,” said Jochen Hanebeck, Chief Operations Officer at Infineon in a press release. “The expansion of our SiC and GaN capacity is readying Infineon for the acceleration of wide bandgap markets. We are creating a winning combination of our development competence center in Villach and cost-effective production in Kulim for wide bandgap power semiconductors.”

Once fully loaded, the new Kulim  site will create 900 high-value jobs. Construction is set to begin in June and the Infinon says that it expects the fab to be ready for equipment in summer 2024. The first wafers are currently scheduled to leave the fab in the second half of 2024. 

The company also says that the Villach site in Austria will continue to serve as the innovation base and global competence center for wide bandgap technology by converting existing silicon facilities over the next years. 6” and 8” silicon lines will be converted to SiC and GaN manufacturing by repurposing non-specific silicon equipment.

Infineon chose not to respond to Evertiq's questions on the size of the facility or the targeted wafer capacity. The company instead referred back to the statement made in the press release saying that the new module – once fully equipped – will generate EUR 2 billion in additional annual revenue to the company, with products based on silicon carbide and gallium nitride.

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September 22 2022 11:51 am V20.8.32-2
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