The recently announced figure of up to RM25-billion (€5 billion) in additional investment by Infineon Technologies AG (“Infineon”) in Kulim, Kedah is a strong vote of confidence in the MADANI Government’s investment policies.
It also reflects the successful initiatives by the Ministry of Investment, Trade & Industry (MITI) and its agency, the Malaysian Investment Development Authority (MIDA) to enhance the ease of doing business in this country.
Infineon, a leader in Power Systems, has taken a further step to shape the industry by significantly expanding its Kulim fab, over and above the original investment announced in February 2022. The company unveiled its plan to build the world’s largest 200mm SiC (silicon carbide) Power Fab today, to be developed over the next five years.
Minister of Investment, Trade and Industry, Tengku Datuk Seri Utama Zafrul Aziz said, “Infineon’s expansion of their world-class silicon carbide facility in Kulim represents a significant milestone in Malaysia’s journey towards developing advanced manufacturing capabilities. This expansion not only creates high-skilled employment opportunities, but also positions Malaysia as a frontrunner in driving green technologies, a crucial aspect of achieving our global sustainable development goals. We value the trust, confidence and recognition in Malaysia’s promising growth prospects shown by esteemed German corporations like Infineon. 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.”
It was previously reported Infineon to build the world’s largest 200-millimeter SiC Power Fab in Kulim, Malaysia, leading to total revenue potential of about seven billion euros by the end of the decade.
Infineon’s Kulim expansion will help the company capitalize on the growing market for silicon carbide, particularly for a broad range of industrial applications such as solar, energy storage and high-power EV charging.
“Malaysia’s role in the global semiconductor supply chain ecosystem has been recognised globally. Infineon’s additional investment supports the key objectives of the National Investment Aspirations (NIA) and the New Industrial Master Plan 2030’s to attract high-tech, high-value investments for the country’s effort towards being a high-income nation. I am confident that our strong execution of these policies will see Malaysia’s semiconductor industry grow its contribution to Malaysia’s GDP, and playing an even bigger role in the country’s future socio-economic development,” Tengku Zafrul added in a statement from the ministry today (Aug 3).
The E&E industry contributes nearly 7% to the country’s Gross Domestic Product (GDP). In the first quarter of 2023, the industry recorded RM2.06 billion worth of approved investments, initiated from 16 projects which would generate 1,729 higherpaying job opportunities. E&E exports for the same period were RM142 billion, a 3.3% increase year-on-year.
