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Infineon Invests €2 Billion In Wide Bandgap Fabrication

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Expansion at existing site in Kulim will generate €2 billion in additional annual revenue from SiC and GaN products

Infineon Technologies is investing more than €2 billion to build a third module at its site in Kulim, Malaysia. Once fully equipped, the new module will generate €2 billion in additional annual revenue with products based on SiC and GaN.

The expansion will benefit from economies of scale already achieved for 200-millimeter manufacturing in Kulim. It will complement Infineon's position in silicon, based on 300-millimeter manufacturing in Villach and Dresden.

“Innovative technologies and the use of green electrical energy are key in reducing carbon emissions. Renewable energies and electro-mobility are major drivers for a strong and sustainable rise in power semiconductor demand,” said Jochen Hanebeck, COO at Infineon. “The expansion of our SiC and GaN capacity is readying Infineon for the acceleration of wide bandgap markets. We are creating a winning combination of our development competence center in Villach and cost-effective production in Kulim for wide bandgap power semiconductors.”

Two sites with high-volume wide bandgap capabilities

Infineon already provides SiC-based products to more than 3,000 customers today. Focus applications are industrial power supply, photovoltaic, transportation, drives, automotive and EV charging.

Infineon is targeting revenues of $1 billion with SiC-based power semiconductors by the middle of the decade. The GaN market is also predicted to undergo massive growth - from $47 million in 2020 to $801 million in 2025 (CAGR: 76 percent; source: Yole - Compound Semiconductor Quarterly Market Monitor Q3 2021).

Once fully loaded, Kulim 3 will create 900 high-value jobs. Construction will begin in June and the fab will be ready for equipment in summer 2024. The first wafers will leave the fab in the second half of 2024. The investment in Kulim will comprise significant value-added steps, in particular epitaxial processes and wafer singulation.

“Malaysia is one of Infineon's main regional hubs and this further investment truly attests to our conducive ecosystem and the capability of our local talent to support long-term growth”, says Malaysia's Senior Minister and Minister of International Trade and Industry, Dato' Seri Mohamed Azmin Ali. “The Government, through Malaysian Investment Development Authority (MIDA), will continue working closely with our strategic investors to solidify Malaysia's prominence as a key semiconductor hub in the region.”

Villach to strengthen its role too

Infineon's Villach site will continue to serve as the innovation base and global competence center for wide bandgap technology by converting existing silicon facilities over the next years. 6 inch and 8 inch silicon lines will be converted to SiC and GaN manufacturing by repurposing non-specific silicon equipment. The Villach site is currently preparing for further growth opportunities.

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