German semiconductor giant, Infineon, has announced a substantial investment of up to five billion euros in expanding its production of silicon carbide (SiC) semiconductors. The company aims to significantly enhance its factory in Kulim, Malaysia, which is set to become the world’s largest 200-millimetre SiC Power Fab.
The planned expansion is backed by customer commitments of approximately five billion euros in the automotive and industrial sectors, with upfront payments of around one billion euros. This support will facilitate the second phase of the Kulim plant, following the initial phase announcement made in February 2022.
Among Infineon’s distinguished clientele, six carmakers stand out, including Ford, SAIC, and Chery, as explicitly mentioned in the company’s statement. Collaborations also extend to Stellantis, Foxconn, VinFast, and the German supplier Vitesco, with a special focus on SiC semiconductor development.
The investment efforts extend beyond Kulim, as Infineon earmarks an additional five billion euros for its new chip factory in Dresden, where it plans to produce 300-millimetre SiC boards. Simultaneously, the existing facility in Villach, Austria, will undergo a transformation to accommodate the production of 200-millimetre SiC semiconductors. The collective investments in Kulim, Dresden, and Villach are projected to result in an estimated annual SiC sales potential of around seven billion euros by the end of the decade.
Infineon’s CEO, Jochen Hanebeck, expressed optimism about the accelerating growth of the silicon carbide market, particularly in the automotive and various industrial applications, such as solar, energy storage, and high-power electric vehicle charging. The Kulim expansion solidifies the company’s leadership position in this dynamic market. Leveraging industry-leading scale and a competitive cost position, Infineon aims to capitalize on its best-in-class SiC trench technology, diverse package portfolio, and unparalleled application understanding, which have been key factors contributing to its success.
With these significant developments, Infineon is poised to further reinforce its market dominance and continue playing a pivotal role in shaping the future of SiC semiconductor technology.
