Infineon to Invest Over €2 Billion in Frontend Fab Capacity in Kulim

(photo credit: eowon designs)

Infineon Technologies AG is strengthening its market leadership in power semiconductors by adding significant manufacturing capacities in the field of wide bandgap (SiC and GaN) semiconductors.

The company is investing over €2 billion to build a third module at its site in Kulim. Once fully equipped, the new module will generate €2 billion in additional annual revenue with products based on silicon carbide and gallium nitride.

The new investment will greatly reinforce its overall competitive advantage, which is based on a combination of technology leadership, a broad product portfolio and deep application know-how, in line with Infineon’s “Product to System” approach.

The expansion, following the company’s long-term manufacturing strategy, will benefit from the excellent economies of scale already achieved for 200-millimeter manufacturing in Kulim. It will complement Infineon’s leading position in silicon, based on 300-millimeter manufacturing in Villach and Dresden.

Once fully loaded, Kulim 3 will create 900 high-value jobs. Construction will begin in June and the fab will be ready for equipment in summer 2024. The first wafers will leave the fab in the second half of 2024. The investment in Kulim will comprise significant value-added steps, in particular epitaxial processes and wafer singulation.

“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.

“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,” he added.

Infineon already provides SiC-based products to more than 3,000 customers today, used in a variety of applications. Infineon’s strategic “Product to System” approach also facilitates the adoption of SiC-based semiconductors with leading base technology, the broadest product and package portfolio and unparalleled application know-how. Focus applications include industrial power supply, photovoltaic, transportation, drives, automotive and EV charging.

Infineon targets revenues of $1 billion with SiC-based power semiconductors by the middle of the decade. The GaN market is also predicted to undergo massive growth – from $47 million in 2020 to $801 million in 2025.

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