The German semiconductor manufacturer Infineon is opening a new factory in Malaysia, soon after having announced the loss or relocation of a total of 2,800 jobs elsewhere.
The first products from the plant in Kulim are to be delivered to customers in the autumn, Infineon CEO Rutger Wijburg said on Thursday.
The first phase, in which Infineon is investing €2 billion ($2.1 billion), should be fully ramped up by the end of 2026 or early 2027. However, the company has already announced a further expansion of the factory in a second phase costing up to €5 billion. The schedule for this expansion is flexible, and can be speeded up or slowed down in response to the market situation.
Infineon will use silicon carbide as the basic material for its semiconductors in the new factory. Wijburg says the compound is more robust and enables particularly efficient semiconductors. However, it is more difficult to use in the manufacturing process, making the products more expensive.
“This has added value for customers, especially when it comes to making something smaller, more efficient or more powerful,” Wijburg said. “If they can make the batteries smaller or have a higher energy yield, it’s worth it.”
He has not revealed whether Infineon will also earn more from the more expensive chips. Typical areas of application are in electric cars, solar and wind power plants and AI data centres.
