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KUALA LUMPUR: Semiconductor solutions provider Infineon will invest more than RM8 billion to build a wafer fab module in Kulim, adding a significant manufacturing capacity in power semiconductors.

The construction is expected to be completed by the third quarter of 2024.

Infineon Technologies AG chief operations officer Dr Rutger Wijburg said Malaysia is an important hub for Infineon due to economies of scale already present in its front-end wafer fab manufacturing in Kulim, and back-end chip manufacturing in Melaka.

"When fully-equipped, products from the new module will generate additional EUR2 billion (EUR1=RM4.52) in annual revenue.

"As decarbonisation efforts gain momentum globally, demand from electric vehicles, charging and storage infrastructures, and renewable energy for wide band gap power semiconductors is growing and we are prepared to support the demand,” he said.

Meanwhile, Malaysian Investment Development Authority deputy chief executive officer (investment development) Lim Bee Vian said Malaysia is fortunate to have long-term and committed industry partners, including Infineon, which have been instrumental in bringing growth to Malaysia's semiconductor industry.

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"As we revel in the announcement for the third facility today to increase the wafer fabrication of wide bandgap semiconductors, I am pleased to note that Infineon Kulim’s third module will be instrumental in increasing Malaysia's position in the global semiconductor supply chain.

"Our collective aim is to establish Malaysia as one of the key partners in global semiconductor supply chains,” she said.

Lim noted that having like-minded global partners like Infineon will strengthen Malaysia’s position in global value chains and its goal to be an advanced manufacturing base in the region, driven by innovation.

"We are committed to supporting industry leaders like Infineon and we appreciate the trust and commitment you have shown throughout your valued presence in Malaysia.” she added.

The electrical and electronics (E&E) industry contributes significantly to Malaysia's GDP growth, export earnings, investment and employment, and plays a vital role in the country's industrial development.

In the first quarter of 2022 alone, Malaysia attracted RM18.6 billion (US$4.4 billion) in approved investments for the E&E industry, among the top performing industries in the period of January to March 2022 for the manufacturing sector. - Bernama