Infineon Launches World's Largest SiC Chip Factory

Infineon Technologies has officially commenced production at its largest power chip manufacturing facility ever built in Malaysia. The new plant in Kulim is set to become the world's leading silicon carbide (SiC) factory once it reaches full capacity within the next five years.

This facility solidifies Malaysia's role as Infineon's largest chip production center in Asia and its foremost location for chip packaging and assembly worldwide. Ng Kok Tiong, Senior Vice President and Managing Director of Infineon Kulim, highlighted that the company now employs approximately 15,000 individuals in Malaysia, surpassing its global workforce in any other location, including its headquarters in Germany.

Infineon, a leader in power and microcontroller (MCU) chip markets, is concentrating on a range of wide-bandgap semiconductors, including SiC and gallium nitride (GaN). The company is focusing on applications in renewable energy, electric vehicles, and AI data centers to address the growing demand for advanced electrification solutions.

Raj Kumar, Senior Vice President of Technology and R&D at Infineon Kulim, explained, “Compared to traditional silicon-based power solutions, SiC technology allows us to double the power density within the same footprint or achieve equivalent power output in half the size.”

Infineon projects that revenue from SiC-related solutions will exceed €600 million ($656 million) by the end of the fiscal year 2024 in September.

The company plans to invest an additional €5 billion in the second phase of construction for the Kulim facility. This investment follows €1 billion in advance payments from customers and around €5 billion in design win commitments.

Infineon’s expansion marks a significant milestone for Malaysia, which has seen a rise in investments amid ongoing U.S.-China trade tensions. The country reported a record investment of 329.5 billion Malaysian Ringgit ($73.5 billion) in 2023, a 24% increase from the previous year. Malaysia is also emerging as a key destination for data center investments, a rapidly growing sector in the technology industry. According to the Malaysian Investment Development Authority, over 45% of 2023’s investments were related to electrical and electronics, as well as information and communication technologies.