In the back drop of growing global fab production, Infineon Technologies has officially opened the first phase of a new fab in Malaysia that will become the world’s largest and most competitive 200-millimetre silicon carbide (SiC) power semiconductor fab. Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim and Chief Minister of the state of Kedah YAB Dato’ Seri Haji Muhammad Sanusi Haji Mohd Nor joined Infineon CEO Jochen Hanebeck, to symbolically launch production.
The highly efficient 200-millimetre SiC power fab will strengthen Infineon’s role as a global leader in power semiconductors. The first phase of the fab, with an investment volume of €2 billion, will focus on the production of silicon carbide power semiconductors and will include gallium nitride (GaN) epitaxy. SiC semiconductors have revolutionised high-power applications because they switch electricity even more efficiently and enable even smaller designs. SiC semiconductors increase efficiency in electric vehicles, fast charging stations and trains as well as renewable energy systems and AI data centres. 900 high-value jobs will be created already in the first phase. The second phase, with an investment of up to €5 billion, will create the world’s largest and most efficient 200-millimetre SiC power fab. Overall, up to 4.000 jobs will be created with the project.
“New generations of power semiconductors based on innovative technology such as silicon carbide are an absolute prerequisite to achieving decarbonisation and climate protection. Our technology increases the energy efficiency of ubiquitous applications such as electric cars, solar and wind power systems and AI data centres. We are therefore investing in the largest and most efficient high-tech SiC production facility in Malaysia, backed by strong customer commitments,” said Jochen Hanebeck, CEO of Infineon Technologies. “Since the demand for semiconductors will constantly rise, the investment in Kulim is highly attractive to our customers, who are backing it with their prepayments. It also increases the resilience of the supply chain for critical components needed for the green transition.”
“Infineon’s remarkable project reinforces Malaysia’s position as a rising major global semiconductor hub,” says Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim. “This major investment, which will locate the world’s largest and most competitive SiC power fab on our shores, will create jobs and opportunities, as well as attract suppliers, universities and top talent. Moreover, it will support Malaysia’s efforts to protect our climate by boosting electrification and increasing the efficiency of many applications, including electric cars and renewable energy. Thus, technology made in Malaysia will become a central part of global decarbonisation efforts in the future.”
“Infineon’s deeply rooted presence in Kulim is a testament to the region’s potential as a hub for high-tech industries,” says Kedah Chief Minister YAB Muhammad Sanusi Md Nor. “This investment will not only create high-value job opportunities for the local community, it will also catalyse economic growth in the region. We are committed to continue providing top business conditions in Kedah and supporting Infineon’s efforts to establish a leading semiconductor facility in Kulim, which will have a positive ripple effect on the entire ecosystem.”
Infineon has secured design wins with a total value of approximately €5 billion and has received approximately €1 billion in prepayments from existing and new customers for the ongoing expansion of the Kulim 3 fab. Notably, these design wins include six OEMs in the automotive sector as well as customers in the renewable energy and industrial segments.
Kulim 3 will be closely connected to the Infineon site in Villach, Austria, Infineon’s global competence centre for power semiconductors. Infineon already increased capacity for SiC and GaN power semiconductors in Villach in 2023. As “One Virtual Fab” for wide-bandgap technologies, both manufacturing sites now share technologies and processes which allow for fast ramping and smooth and highly efficient operation. The project also offers a high grade of resilience and flexibility, which will ultimately benefit Infineon’s customers.
The expansion 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 and Dresden. Thus, Infineon is strengthening its technological leadership across the entire spectrum of power semiconductors, in silicon as well as SiC and GaN. In addition, the investment in wide-bandgap capacity in Kulim strengthens the local ecosystem and proves that Infineon is a reliable partner within the growing semiconductor hub Malaysia. Infineon’s operations in Malaysia started as early as 1973 in Melaka. In 2006, the company opened Asia’s first front-end fab in Kulim. Currently, Infineon employs more than 16,000 highly skilled people in Malaysia.
Sustainability at Kulim 3
The Kulim 3 facility sets a new standard for energy efficiency and sustainability in semiconductor manufacturing. Designed with cutting-edge industry standards, the facility incorporates numerous measures to optimise energy use and reduce environmental impact.
One of the key features is the use of state-of-the-art PFC abatement systems and pressure-independent balancing control valves to enhance the efficiency of the air conditioning. Solar panels installed on the roof contribute to the facility’s energy needs, while buffer zones for tree planting and grass turfing create green spaces around the site. Additionally, a first-of-its-kind rainwater harvesting tank at Infineon collects rainwater for the cooling tower, saving 300,000 cubic metres of water annually. This initiative, alongside water recycling and water-reducing sanitaryware, significantly reduces potable water consumption.
In the tropical climate of Malaysia, where temperatures range from 21°C to 33°C, effective cooling is essential. The facility employs advanced hydrogen generation techniques for the WBG EPI deposition process, using an electrolyser to produce hydrogen from water instead of relying on fossil methane. This method aligns with Infineon’s commitment to reducing its carbon footprint.
Moreover, the Kulim 3 project utilises zero ozone depletion potential (ODP) and ultra-low global warming potential (GWP) R-1234ze HFO refrigerant for all centrifugal chillers, further minimising environmental impact. The site is also poised to source green energy in the future, reinforcing its sustainable operations.
These investments in sustainable technology not only enhance the environmental performance of the Kulim 3 facility but also complement the positive climate impact of Infineon’s products. Infineon semiconductors are integral to the global energy transition, being used in solar and wind power plants, electric cars, and AI data centres to increase energy efficiency. Over their lifetime, these chips save 34 times the amount of CO2 emitted during their production, significantly contributing to a net-zero society.
“For Infineon, sustainable manufacturing means avoiding emissions. And the key lever here is PFC abatements. We have installed this technology across all our front-end sites already. And with this, we are able to save two-thirds of our ‘scope one’ emissions. And of course, Kulim three will be equipped with this latest technology from day one. The second big lever is green energy. And we are very proud that we will be able to switch to 100% renewable energy as of 2025. We have already moved in Melaka and Kulim to renewable energy in 2023,” says Elke Reichart, Chief Digital and Sustainability Officer at Infineon.
