Infineon to ‘significantly’ expand its SiC Power Fab in Kulim, Malaysia

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Infineon Technologies has announced that it is to significantly expand its Kulim fab – over and above the original investment announced in February 2022 – as it looks to build the world’s largest 200-millimeter SiC (silicon carbide) Power Fab.

The planned expansion is backed by customer commitments covering about five billion euros of new design-wins in automotive and industrial applications as well as about one billion euros in pre-payments.

Over the next five years Infineon will additionally invest up to five billion euros in Kulim during a second construction phase for Module Three. This highly competitive manufacturing base will support Infineon’s SiC market share target of 30% towards 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.

Infineon has been awarded new design wins of about five billion euros along with about one billion euros in prepayments from existing and new customers. In the automotive sector this includes six OEMs, three of them from China. Among the customers are Ford, SAIC and Chery. In the area of renewable energies customers include SolarEdge and three leading Chinese photovoltaic and energy storage systems companies. 

In addition, Infineon and Schneider Electric have agreed on a capacity reservation including prepayments for power products based on silicon and silicon carbide.

Commenting on the announcement the Malaysian Minister of Investment, Trade and Industry (MITI), His Hon. Tengku Datuk Seri Utama Zafrul Aziz said, "Infineon’s expansion of their world-class silicon carbide facility in Kulim marks a significant milestone in Malaysia's pursuit of developing advanced manufacturing capabilities, creating high-skilled employment opportunities and positioning the country at the forefront of enabling green technologies, which are crucial to achieving our global sustainable development goals.

“The innovative power semiconductor technologies manufactured in the SiC Power Fab will also bolster Malaysia's position as a key player in the world's semiconductor ecosystem, with a growing role specifically in the sustainable technology supply chain.”