KUALA LUMPUR: Europe's leading chipmaker Infineon has kicked off production at its largest-ever power chip plant in Malaysia and will invest an additional RM30.1 billion (€5 billion) for Phase 2 of the plant.
This is on top of the original €2 billion for Phase 1 on the plant in Kulim, Kedah as Infineon builds the world's largest 200-millimetre (mm) silicon carbide (SiC) power fabrication plant.
Both Phase 1 and Phase 2 will generate 900 and 600 high value jobs in Malaysia respectively. In total, 4,000 jobs will be created.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the investment highlights Malaysia's growing credibility as a regional hub for cutting-edge technology and innovation in the semiconductor space.
Tengku Zafrul said Infineon's additional RM30.1 billion investment in cutting-edge manufacturing technologies will not only drive innovation and Malaysia's industrial reform agenda, but also create 1,500 high-skilled job opportunities for Malaysians.
"A robust industrial talent pipeline, ESG considerations and ecosystem development are key, and this is where our National Semiconductor Strategy will play its role towards attracting more high-quality investments that will drive Malaysia's industrial reforms and sustainable growth," he said.
Malaysian Investment Development Authority (Mida) chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said Infineon's expansion significantly strengthens Malaysia's position in the global semiconductor supply chain.
As decarbonisation gains pace, Sikh Shamsul said the investment highlights the government's dedication to green technologies and sustainable development, in line with the Green Investment Strategy (GIS).
"Infineon has been a key partner in these efforts, and their growth in Kulim is a major step for sustainable socio- economic progress.
"By attracting foreign investments in green technology, we are enhancing our green investment ecosystem as well as the local supply chain.
"Mida thanks Infineon for their innovative solutions and sustainability efforts, and we look forward to our continued partnership," he added.
With one of the most diverse semiconductor sectors in the Asia Pacific, Malaysia has seen impressive growth.
In the first quarter of 2024 alone, the industry attracted RM34.3 billion in approved investments from 34 projects, creating 6,221 new jobs.
This development aligns with the National Semiconductor Strategy, which has set a bold target to attract at least RM500 billion in investment for the semiconductor industry, in the first phase of the plan.