Infineon to build the world’s largest 200-mm SiC power fab in Malaysia

Infineon to build the world’s largest 200-mm SiC power fab in Malaysia

Business news |
By Jean-Pierre Joosting

Cette publication existe aussi en Français

The decarbonization trend will result in strong market growth for power semiconductors, in particular those based on wide bandgap materials such as SiC.

As a leader in power systems, Infineon Technologies AG is now taking a further, decisive step to shape this market: By significantly expanding its Kulim fab — over and above the original investment announced in February 2022 – Infineon will build the world’s largest 200-millimeter SiC (silicon carbide) power fab. The planned expansion is backed by customer commitments covering about five billion euros of new design-wins in automotive and industrial applications as well as about one billion euros in pre-payments.

Over the next five years Infineon will additionally invest up to five billion euros in Kulim during a second construction phase for Module Three. The investment will lead to an annual SiC revenue potential of about seven billion euros by the end of the decade, together with the planned 200-millimeter SiC conversion of Villach and Kulim. This highly competitive manufacturing base will support Infineon’s SiC market share target of 30% towards the end of the decade. Infineon is confident that the company’s SiC revenue in the fiscal year 2025 will come in ahead of the target of one billion euros.

“The market for silicon carbide shows accelerating growth, not only in automotive but also in a broad range of industrial applications such as solar, energy storage and high-power EV charging. With the Kulim expansion, we will secure our leadership position in this market,” said Jochen Hanebeck, CEO of Infineon. “With the industry’s leading scale and a unique cost position, we are leveraging our competitive position of best-in-class SiC trench technology, the broadest package portfolio and unrivaled application understanding. These factors are the areas of differentiation and success in the industry.”

Infineon has been awarded new design wins of about five billion euros along with about one billion euros in prepayments from existing and new customers. In the automotive sector this includes six OEMs, three of them from China. Among the customers are Ford, SAIC and Chery. In the area of renewable energies customers include SolarEdge and three leading Chinese photovoltaic and energy storage systems companies. In addition, Infineon and Schneider Electric agreed on a capacity reservation including prepayments for power products based on silicon and silicon carbide. Infineon and the respective customers will provide more details in separate announcements in the near future. The prepayments will contribute positively to Infineon’s cash flow in the coming years and shall be fully repaid in connection with the agreed sales volumes by 2030 at the latest.

The Right Honourable Dato’ Seri Anwar bin Ibrahim, Prime Minister of Malaysia, commented: “Malaysia is putting in maximum efforts to meet its national target to decarbonize its economy and achieve net zero by 2050. Malaysia’s continued appeal as a preferred investment destination comes with a well-established landscape for developing innovative and sustainable technologies. In this vein, Infineon’s vision on green technology and sustainability puts it right at home in Malaysia. Infineon and other well-established German corporations’ continued faith in Malaysia is a vote of confidence in Malaysia’s new economic growth agenda premised on inclusivity and sustainability, enabled by strong policies on knowledge transfer, quality investments, business enablement and socio-economic well-being based on equitable sharing of the nation’s wealth.”

Sustainability is a key element in the planning, construction and operation of the SiC power fab. The building is designed in a way that allows Infineon to make responsible use of resources such as electricity and water.


Related articles

Infineon expands supplier base for SiC wafers
STMicroelectronics and Soitec cooperate on SiC
Onsemi and ZEEKR in long-term EV SiC agreement

If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :    eeNews on Google News


Linked Articles