Infineon doubles down on wide bandgap by investing 2 bln euros to expand Kulim capacity
17 Feb 2022
German chip maker Infineon Technologies AG (Infineon) is strengthening its market leadership in power semiconductors by adding manufacturing capacity in the field of “wide bandgap” semiconductors and investing more than two billion euros to build a third module at its site in Kulim, Kedah.
The company said once fully equipped, the new module will generate two billion euros in additional annual revenue with products based on silicon carbide (SiC) and gallium nitride (GaN).
Chief operations officer Jochen Hanebeck said the expansion is in line with the company’s long-term manufacturing strategy, which will benefit from the excellent economies of scale already achieved for 200-millimetre manufacturing in Kulim.
It will complement Infineon’s leading position in silicon, based on 300-millimetre manufacturing in Villach, Austria, and Dresden, Germany.
“The expansion of our SiC and GaN capacity is readying Infineon for the acceleration of wide bandgap markets,” he said in a statement today.
“We are creating a winning combination of our development competence centre in Villach and cost-effective production in Kulim for wide bandgap power semiconductors.”
Once fully loaded, Kulim 3 will create 900 high-value jobs and added that construction will begin in June with the fab expected to be ready for equipment in the summer of 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,” the company said.
Meanwhile, Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the Malaysian Investment Development Authority (MIDA) will continue to work closely with our strategic investors to solidify Malaysia’s prominence as a key semiconductor hub in the region.
“Malaysia is one of Infineon’s main regional hubs and this further investment truly attests to our conducive ecosystem and the capability of our local talent to support long-term growth,” he said.
Infineon already provides SiC-based products to more than 3,000 customers at present.
The company is targeting revenue of US$1 billion with SiC-based power semiconductors by the middle of the decade. The GaN market is also predicted to undergo massive growth from US$47 million in 2020 to US$801 million in 2025.