Infineon Launches €2bn Kulim Power Fab

Infineon Technologies has recently inaugurated the first phase of its cutting-edge power fab in Kulim, Malaysia. This significant milestone marks the beginning of what is set to become the world's largest and most competitive 200mm silicon carbide (SiC) power semiconductor fab, alongside the production of gallium nitride (GaN) devices.

The initial phase of the fab represents a substantial €2bn investment in the manufacturing of SiC power semiconductors sourced from purchased SiC wafers. Additionally, it will incorporate gallium nitride (GaN) epitaxy, leading to the creation of 900 job opportunities. Production activities are slated to commence by the conclusion of 2024.

Following the first phase, the subsequent stage involves an investment of up to €5bn, propelling the facility to become the world's largest and most efficient 200mm SiC power fab. This expansion is anticipated to generate up to 4,000 jobs in total, positioning it in competition with prominent players such as Wolfspeed in the US and power-to-chip plants in Europe.

Infineon has already secured design wins amounting to €5bn and has received approximately €1bn in prepayments from both existing and new customers for the ongoing expansion of the Kulim 3 fab. These wins encompass collaborations with six OEMs in the automotive sector, as well as clients in the renewable energy and industrial domains.

The Kulim 3 facility will be closely linked to Infineon's site in Villach, Austria, which serves as the company's global competence center for power semiconductors. By sharing technologies and processes between the two sites, Infineon aims to facilitate rapid scaling and ensure seamless and highly efficient operations.

Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim expressed his enthusiasm, stating, “Infineon’s remarkable project reinforces Malaysia’s position as a rising major global semiconductor hub. This major investment will create jobs, attract suppliers and top talent, and support Malaysia’s climate protection efforts by enhancing electrification and efficiency in various applications.”

Kedah Chief Minister YAB Muhammad Sanusi Md Nor also commended the investment, highlighting its potential to drive economic growth and create high-value job opportunities in the region. The commitment to providing favorable business conditions in Kedah underscores the support for Infineon's endeavor to establish a leading semiconductor facility in Kulim.

The Kulim 3 fab is committed to sustainable practices, with plans to operate on 100% green electricity and implement the latest energy efficiency measures. These include a state-of-the-art abatement system, the use of green refrigerant chemicals, and processes for recycling indirect materials and optimizing water efficiency.