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Infineon’s Bold Move: Building the World’s Largest SiC Power Fab in Kulim, Malaysia

Infineon has announced that it will invest up to five billion euros in the next five years to build the world’s largest 200-millimeter silicon carbide (SiC) power fab in Kulim, Malaysia. This expansion is expected to generate a total revenue potential of about seven billion euros by the end of the decade, as well as strengthen Infineon’s leadership position in the SiC market.

SiC is a wide bandgap material that offers superior performance and efficiency compared to conventional silicon-based power semiconductors. SiC devices can operate at higher temperatures, voltages, and frequencies, enabling more compact and reliable power systems for applications such as electric vehicles, renewable energy, and industrial drives.

Infineon has secured customer commitments of around five billion euros for its SiC products, along with upfront payments of around one billion euros. The customers include six automotive original equipment manufacturers (OEMs), such as Ford, SAIC, and Chery, as well as several industrial players, such as SolarEdge and Schneider Electric. Infineon also has a strategic partnership with Vitesco Technologies, a German supplier of powertrain solutions.

The Kulim fab is part of Infineon’s global SiC manufacturing network, which also includes the 300-millimeter SiC fab in Dresden, Germany, and the 200-millimeter SiC conversion of the existing fab in Villach, Austria. Together, these fabs will enable Infineon to meet the growing demand for SiC devices and achieve its SiC market share target of 30% by the end of the decade.

“The market for silicon carbide shows accelerating growth, not only in automotive but also in a broad range of industrial applications such as solar, energy storage and high-power EV charging. With the Kulim expansion, we will secure our leadership position in this market,” said Jochen Hanebeck, CEO of Infineon.

The Kulim fab will also contribute to Malaysia’s economic development and environmental sustainability. According to Datuk Seri Mustapa Mohamed, Minister in the Prime Minister’s Department (Economy), “The cutting-edge power semiconductor technologies produced in Infineon’s SiC Power Fab is a milestone development towards elevating Malaysia’s position in the semiconductor industry, while also fostering a partnership focused on creating a more sustainable future for our nation and the world”.

Infineon expects to start production at the Kulim fab by 2024. The company currently employs about 11,000 people in Malaysia and operates four manufacturing sites in Malacca, Batu Berendam, Kulim, and Penang.

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