September 23, 2025
Infineon Technologies has announced a new investment of 30 billion Malaysian ringgit (around $7.1 billion) to expand its facility in Kulim, Kedah. The goal is ambitious: to build the world’s largest 200 mm silicon carbide (SiC) power semiconductor factory, creating 1,500 skilled jobs and strengthening Malaysia’s role as a global hub for advanced electronics.
The announcement, made on July 28, is particularly striking given the current state of the SiC sector. Wolfspeed has filed for bankruptcy, Renesas has exited automotive SiC power devices, Rohm reported its first quarterly loss in more than a decade, and STMicroelectronics is facing a downturn.
In this environment, Infineon is taking the opposite route: ramping up capacity and consolidating its leadership, signaling confidence both in the technology and in the long-term outlook for silicon carbide.
The newly announced expansion is the third phase of a multi-year plan. Following the first €2 billion (9.8 billion ringgit) investment and the second €5 billion (24.5 billion ringgit) announced in 2024, the Kulim fab will become Infineon’s largest 200 mm front-end site worldwide.
Production will focus on semiconductors for electric vehicles, industrial energy systems, green applications, and sensors. Beyond strengthening its footprint in Southeast Asia, the project underscores the company’s strategy: to invest at scale and secure leadership in wide-bandgap technologies, including GaN.
By expanding capacity in the middle of a downturn, Infineon is signaling a forward-looking strategy. The company is betting on the rising demand for SiC to support electrification and decarbonization, leveraging 200 mm wafers to cut costs, achieve economies of scale, and provide customers with a safer, more resilient supply chain.
With its massive investment in Malaysia, Infineon is not merely responding to current challenges: it is reshaping the future of silicon carbide. The Kulim fab is set to become a global benchmark, enabling the transition to more efficient electric vehicles and energy systems. A strategic choice that confirms Infineon’s determination to lead the market, even through turbulent times.
