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Infineon Technologies to expand manufacturing base in Malaysia

Infineon Technologies to expand manufacturing base in Malaysia

22 Oct 2021

The expansion will lead to the creation of high-quality jobs and niche technology capabilities, says Mohamed Azmin 

Germany’s global semiconductor producer, Infineon Technologies AG has chosen to transfer its silicon carbide and gallium nitride epitaxy production to Kulim Hi-Tech Park in Kedah and expand its manufacturing base in Malaysia. 

Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali said this intention was expressed during a meeting in conjunction with the Trade and Investment Mission to Stuttgart, Germany on Oct 14. 

“I met with Jochen Hanebeck, the COO of Infineon Technologies and handed him an offer letter from the government indicating the nation’s interest to support and facilitate Infineon Technologies’ further investment plans,” Mohamed Azmin said in a statement yesterday. 

“Indeed, this is a true testament to our conducive ecosystem and the capability of our local talent to support their long-term growth. This expansion will certainly lead to the creation of high-quality jobs and niche technology capabilities, of which the Malaysian government will continue to work closely with Infineon Technologies in introducing strategic measures to solidify our growth,” he added. 

Infineon Technologies recently announced its expansion-related investments of RM11.53 billion worldwide. 

Currently, Malaysia is one of Infineon Technologies’ main regional hubs which has already invested RM20 billion, with its integrated semiconductor manufacturing operation in place. 

“The value of this expansion will be announced in due course,” Mohamed Azmin added. 

According to the minister, Infineon Technologies also expressed that it will continue to be a strategic partner to Malaysia in accelerating the growth of electrical and electronics (E&E) industry, particularly towards moving up the value chain in areas of packaging, testing integrated circuits and wafer processing. 

The announcement is also in line with the company’s long-term plan for an increment of 50% investment in its 2022 fiscal year to address the increase in demand, resulting from growth drivers such as electrification and digitalisation of sectors globally. 

“This will ultimately expand Infineon Technologies’ revenue base, underscoring Malaysia’s prominence as one of the biggest and key semiconductor hubs in the region,” the minister added. 

Going forward, Mohamed Azmin said the government will ensure a conducive environment for global semiconductor leaders to move up the value chain through stronger adoption of advanced technologies and production of new sophisticated products. 

“In this regard, the E&E industry has been identified as one of the strategic and high impact industries under the 12th Malaysia Plan that will catalyse the nation’s economic growth,” the minister added. 

Minister in the Prime Minister’s Department Datuk Seri Mustapa Mohamed said last week that the E&E industry plays a critical role in the nation’s industrial development. 

He said that the E&E sector represents about 35% of Malaysia’s total exports. 

“In the first eight months of 2021, Malaysia’s total trade in E&E products amounted to RM477 billion. Exports rose 18.8% to RM282 billion so we must address the issue for our E&E sector to move up the value chain,” he said. 

The E&E industry is projected to contribute RM120 billion to Malaysia’s GDP and RM495 billion to its exports by 2025. 

Source: The Malaysian Reserve

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