25 billion RM High-Tech investment in Kedah

Infineon Technologies AG announced a groundbreaking investment of approximately 24.9 billion RM to construct the world’s largest 200mm silicon carbide (SiC) power fabrication plant in Kulim, Kedah. This massive five-year project aims to significantly enhance Malaysia’s capabilities in the semiconductor industry, targeting an annual revenue potential of 7.0 billion euros and aiming for a 30% market share in the SiC sector by the decade’s end.

Expanding Malaysia’s Technological Horizons

Prime Minister Datuk Seri Anwar Ibrahim praised Infineon’s commitment, emphasizing Malaysia’s strategic positioning as an innovative and sustainable technology development hub. The expansion aligns with Malaysia’s economic growth strategy, focusing on inclusivity and sustainability. Infineon’s CEO, Jochen Hanebeck, highlighted the accelerating SiC market growth, attributing the expansion to strengthening Infineon’s leadership in automotive and industrial applications, including renewable energy solutions and electric vehicle charging.

A worker inspects semiconductor chips at the chip packaging firm Unisem (M) Berhad plant in Ipoh, Malaysia October 15, 2021. Image Credit: Lim Huey via REUTERS.

A Leap Towards Green Advanced Technology

The investment by Infineon signifies a vital step in Malaysia’s journey toward advanced manufacturing and green technology leadership, underlining the country’s commitment to sustainable development goals. Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz lauded the move, which promises high-skilled job creation and positions Malaysia at the forefront of green technological advancements. Moreover, the initiative is part of a broader trend, with several Chinese semiconductor firms expanding their operations in Malaysia, aiming to increase the country’s global semiconductor market share.

The substantial investment by Infineon Technologies in Kedah heralds a new era for Malaysia’s semiconductor industry, emphasizing the country’s growing importance in the global tech landscape. This move not only boosts local employment and technological expertise but also reinforces Malaysia’s commitment to sustainable and innovative industrial growth.