Infineon opens the world’s largest and most efficient silicon carbide power semiconductor wafer fab in Malaysia

2024/08/09

TechNewsTechnology News
August 09, 2024
Author Atkinson

European semiconductor giant Infineon announced that the first phase of construction of its new factory in Malaysia has officially started operations. Upon completion, the plant will become the world's largest and most competitive 8-inch silicon carbide (SiC) power semiconductor wafer fab. This high-efficiency 8-inch silicon carbide (SiC) power semiconductor wafer fab will further strengthen Infineon’s position as the global leader in power semiconductors. The first phase of the new plant, with an investment of 2 billion euros, will focus on the production of silicon carbide power semiconductors and cover the epitaxial process of gallium nitride (GaN).

Infineon pointed out that silicon carbide semiconductors have brought innovation to high-power applications because they can convert power more efficiently and enable smaller designs. Silicon carbide semiconductors improve the efficiency of electric vehicles, fast charging piles, rail trains, renewable energy systems and AI data centers. The first phase of the new factory will create 900 high-value jobs. The second phase of construction, with an investment of 5 billion euros, will build the world's largest and most efficient 8-inch silicon carbide power semiconductor wafer fab. The entire scheme will create up to 4,000 jobs.

Infineon CEO Jochen Hanebeck said that new generations of power semiconductors based on innovative technologies such as silicon carbide are an absolute prerequisite for achieving decarbonization and climate protection. Our technologies improve energy efficiency in ubiquitous applications such as electric vehicles, solar and wind energy systems, and AI data centers. Therefore, we have invested in the largest and most efficient high-tech silicon carbide production facility in Malaysia, backed by strong customer commitment and support. As demand for semiconductors will continue to increase, investing in Kulim is extremely attractive to our customers, and supporting this initiative with upfront payments also enhances the supply chain resilience of key components required for the green transition.

Malaysian Prime Minister Datuk Seri Anwar said that this outstanding project from Infineon strengthens Malaysia’s position as an emerging global semiconductor hub. This major investment will build the world’s largest and most competitive silicon carbide power fab on our soil, creating jobs and attracting suppliers, universities and top talent. In addition, this will support Malaysia’s climate protection efforts by promoting electrification and improving efficiency in numerous applications including electric vehicles and renewable energy. Therefore, technology made in Malaysia will become part of the core of the global push for low-carbonization in the future.

Infineon has secured design-win orders worth a total of approximately €5 billion and received approximately €1 billion in advance payments from existing and new customers for the ongoing expansion of its Kulim 3 plant. Notably, these design-win orders include customers from six car manufacturers as well as the renewable energy and industrial sectors.

The Kulim 3 plant will be closely linked to Infineon's production site in Villach, Austria, which is Infineon's global competence center for power semiconductors. Infineon has increased the production capacity of its Villach plant in SiC and GaN power semiconductors in 2023. The two production bases are closely integrated and will serve as a "virtual fab" for wide energy gap technology, sharing technology and processes to achieve rapid mass production and smooth and efficient operations. The project also provides a high degree of resilience and flexibility, and Infineon's customers will be the ultimate beneficiaries of the project.

The huge economies of scale that the Kulim fab has achieved in 8-inch wafer production lay a good foundation for this expansion. Infineon's 12-inch wafer fabs in Villach and Dresden have established the company's leading position in the semiconductor market, and the investment and expansion of the Kulim plant will further consolidate and enhance this leading position. Infineon is strengthening its technology leadership in the overall power semiconductor areas - silicon, silicon carbide and gallium nitride.

In addition, Infineon’s investment in Kulim to expand wide-bandgap semiconductor production capacity will also help strengthen the local industrial ecosystem, proving that Infineon is a reliable partner in Malaysia’s fast-growing semiconductor hub. Infineon has been operating in Malacca as early as 1973. In 2006, Infineon established Asia's first front-end process wafer fab in Kulim. Infineon currently has over 16,000 highly skilled employees in Malaysia.

Infineon’s Kulim Plant 3 will use 100% green electricity and adopt the latest energy-saving measures to help Infineon achieve its carbon neutrality goal. To avoid carbon emissions, Infineon will use state-of-the-art emission reduction systems and green refrigerants with high energy efficiency and extremely low global warming potential. In addition, Infineon will take other measures to ensure sustainable operations, including the use of state-of-the-art indirect material recovery processes and state-of-the-art water efficient utilization and recycling processes. Infineon is currently working towards obtaining the prestigious Green Building Index certification.

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