Infineon constructs world's largest 200mm SiC power fab in Kulim, Malaysia
August 3, 2023, Munich (Germany)
The decarbonization trend will lead to strong market growth for power semiconductors, especially semiconductors based on wide band gap materials. As a leader in power systems, Infineon Technologies (FSE: IFX/OTCQX: IFNNY) is taking another decisive step to shape this market. Infineon will significantly expand its Kulim facility and build the world's largest 200mm SiC (silicon carbide) power fab through an investment exceeding the original amount announced in February 2022. The expansion plan is supported by customer commitments, including approximately EUR 1 billion in advance payments, as well as approximately EUR 5 billion in new automotive and industrial business wins.
Additional investment of up to 5 billion euros in Krim
Over the next five years, Infineon will invest up to an additional EUR 5 billion in Crim in the second phase of Module 3. This investment, together with the planned conversion to 200mm SiC in Villach and Klim, is expected to generate annual SiC revenues of approximately €7 billion in 2030. This highly competitive manufacturing base supports Infineon's SiC market share target of 30% by 2030. Infineon is confident that SiC sales in fiscal year 2025 will exceed the target of 1 billion euros.
Comment from Infineon CEO Jochen Hanebeck
Jochen Hanebeck, CEO of Infineon, said, ``The SiC market is growing at an accelerating rate not only in automobiles but also in a wide range of industrial applications such as solar power generation, energy storage, and high-power EV charging. will lead this market, with industry-leading scale and unique cost position, combined with best-in-class SiC trench technology, broadest package portfolio, and unparalleled application understanding, giving us a competitive advantage. "These factors are what will differentiate us and help us succeed in the industry."
Agreed on capacity reservation contract with major manufacturer
Infineon has won new business of approximately 5 billion euros, along with advances of approximately 1 billion euros from existing and new customers. In the automotive field, there are six OEMs, three of which are Chinese companies. Customers include Ford, SAIC Motor and Chery Automobile. In the field of renewable energy, our customers include SolarEdge and three major solar power generation and energy storage system companies in China. In addition, Infineon and Schneider Electric have agreed to a capacity reservation agreement that includes upfront payments for silicon and SiC-based power products. Infineon and these customers will announce further details at a later date. The upfront payment will contribute positively to Infineon's cash flow in the coming years and will be repaid in accordance with agreed sales volumes by 2030 at the latest.
Comments from Malaysian Prime Minister Anwar
The Right Honorable Dato' Seri Anwar bin Ibrahim, Prime Minister of Malaysia, expressed his appreciation for Infineon's commitment to establishing an important wide bandgap hub in the country. “Malaysia is making every effort to decarbonise its economy and achieve its national goal of achieving net zero by 2050.Malaysia continues to be an attractive investment destination due to its innovative and sustainable We are in the perfect environment to develop possible technologies. Infineon's vision for green technology and sustainability is a perfect fit for Malaysia. Infineon and other German companies continue to trust Malaysia This is due to Malaysia's new economic growth agenda, which seeks socio-economic well-being based on knowledge transfer, quality investment, business support, and fair distribution of the nation's wealth, and is inclusive. and sustainability.”
Comments from Minister Aziz of the Ministry of Investment, Trade and Industry
His Hon. Tengku Datuk Seri Utama Zafrul Aziz, Minister of the Ministry of Investment, Trade and Industry (MITI), praised Infineon's expansion, saying: “Infineon’s expansion of its world-class SiC facility in Kulim is critical to developing advanced manufacturing capabilities, creating employment opportunities for a highly skilled workforce and achieving the global Sustainable Development Goals. This is an important milestone towards Malaysia's goal of positioning Malaysia at the forefront of enabling green technology. Strengthening Malaysia's position as a key player and increasing its role in sustainable technology supply chains, among other things. We are thrilled to share Malaysia's efforts to address the impacts of climate change with Infineon. Malaysia's We look forward to a long-term partnership to further develop the green technology ecosystem.”
SDGs initiatives
Sustainability is a key factor in fab planning, construction, and operation. The plant is designed to enable Infineon to use resources such as electricity and water responsibly.