Infineon fab doubles down on Malaysia SiC chip production – Asia Times
Infineon Technologies, a German company, has begun production at its brand-new facility in Kulim, Malaysia, which it hopes will become the world’s largest and most competitive 200-millimeter silicon carbide ( SiC ) power semiconductor factory.
Known as Kulim 3, the fresh lovely follows the beginning of Kulim 1 in 2006 and Kulim 2 in 2016, reinforcing Infineon’s long-term devotion to semiconductor manufacturing in Malaysia. The production of more energy-efficient electric vehicles requires the use of Such power sources.
For the formal launch ceremony on August 8th, Infineon CEO Jochen Hanebeck and state governor Kedah’s chief minister, Anwar Ibrahim, attended the official ceremony.
According to Hanebeck, “decarbonization and environment protection are the absolute prerequisites for new generations of energy semiconductors based on cutting-edge technologies like silicone carbide.” Our technology improves the power efficiency of complex software like AI data centers, solar and wind farms, and electric cars.
He added:” The expenditure in Kulim is very appealing to our clients, who are backing it with their prepayments”.
Infineon has reported prepayments from new and existing customers totaling about one billion euros for Kulim 3’s output, and about five billion euros ( US$ 5.46 billion ) worth of design wins in the automotive, industrial, and renewable energy sectors.  ,
That will help pay for the bank’s purchase in Kulim 3, which is anticipated to be worth about two and five billion euros for Phases 1 and 2.
Although Phase 1 will concentrate on SiC power semiconductors, it will also use some of its potential for gallium nitride ( GaN ) epitaxy, which involves creating a GaN layer on a silicon wafer.
The service will become what Infineon envisions to be the largest and most effective 200-millimeter Such power semiconductor factory in the world when phase 2 is finished in 2027. Roughly 5, 000 jobs are expected to be created.
Kulim 3 may work closely with Infineon’s world centre for electricity semiconductors in Villach, Austria, where its SiC and GaN energy silicon systems are developed.
When they are available for large-scale generation, they are brought to Kulim, where there is enough room to satisfy demand. Kulim employees receive training at Villach.
Infineon adopts a” One Virtual Fab” approach, which combines both sites ‘ technologies and procedures to enable faster production ramp-up and more effective operations.
The older 200mm infrastructure in Kulim have now produced level savings. In Villach and Dresden, the organization runs 300-mm silicon lines, and it is likely to begin the Kulim 3 production conversion process in the coming years. Greater economies of scale are made by larger wafer.
Such power semiconductors are transforming high-power applications because they can switch electricity more effectively, resist large temperatures, and support automotive and industrial applications in less time than silicon.
They increase productivity in electric cars, battery charging stations and other programs including trucks, trains, professional technology, solar power and data centres.
GaN devices are employed in high-frequency devices like radar and microwaves. Although that business is much smaller, Infineon points out that” the demand for chromium nitride devices is growing extremely quickly, with a high double-digit CAGR.” It is crucial for us as the industry leader to expand both the manufacturing capacity and capabilities in order to meet this demand.
The Kulim 3 fantastic may be completely powered by alternative energy and use cutting-edge technologies to assure its successful use and help the goal of carbon neutrality as befits its product line.  ,
Nvidia, which is Germany’s largest silicon firm, now has about 58, 600 people worldwide. Of these, more than 16, 000 are in Malaysia, in Kulim and in Melaka, where the corporation has been operating an assembly, package and check service since 1973. In Malaysia, Infineon employs more people than it does in Germany.
The company also has manufacturing and other activities in Singapore, Thailand, Vietnam, the Philippines, Indonesia, Australia, Japan, South Korea, Taiwan, mainland China and India ( 25 locations in Asia-Pacific and 14 in Greater China ). Asia offers both the nation’s most aggressive labor costs and its largest marketplace for electronics.
Kulim 3 may develop Infineon’s position in the global market for Such power devices, of which it is now the world’s third-largest supplier, and for all types of power and mechanical semiconductors, for which it ranks second.
In 2023, Infineon had 16.5 % of the worldwide market for Such power tools, according to TrendForce. By 2030, it hopes to possess 30 %, but so does Japan’s Rohm, and various companies are also taking an aggressive approach to power development and moving from 200-mm to 300-mm chips. According to the tech market research firm:
The SiC industry is currently in a phase of rapid growth and intense competition, where economies of scale are more important than any other factor, according to TrendForce. Leading manufacturers have switched from their traditional, skeptical approach to actively investing in SiC expansion plans to take the lead. Currently, more than 10 companies worldwide are investing in the construction of 8-inch SiC wafer plants”.
Despite the decline in demand for electric vehicles in Western nations, this is taking place. The majority of the new capacity is being added in Asia, where the majority of electric vehicles are produced, including China, Japan, and South Korea.
The top five suppliers collectively account for more than 90 % of all total SiC power semiconductor sales, and their combined market share goals total over 100 %. Therefore, competition is likely to continue to be fierce, lowering costs and improving the price of electric vehicles.
Nearly 50 % of Infineon’s workforce is based in Asia, and demand trends indicate that this percentage will increase. As CEO Hanebeck says,” we are building these fabs for 20 to 30 years”.
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