Infineon Technologies, a leading German chip maker, has announced its plans to invest up to €5 billion ($5.47 billion) over the next five years to expand its chip-making facilities in Kulim, Malaysia.
The company’s decision to increase its investment in Malaysia is driven by the strong demand for power semiconductors. In February 2022, Infineon had initially revealed its intention to invest over €2 billion to construct a third module at its Kulim site. However, due to customer commitments and prepayments, the company has decided to expand the investment beyond the original plan.
Infineon has secured customer commitments totalling approximately €5 billion for automotive and industrial applications. Additionally, it has received prepayments amounting to around €1 billion. These figures validate Infineon’s confidence in the planned expansion. The company expects its revenue from silicon-carbide operations to surpass its target of €1 billion by fiscal 2025 and reach approximately €7 billion by the end of the decade.
In conclusion, Infineon Technologies’ significant investment in expanding its chip-making facilities in Kulim, Malaysia, underscores its commitment to meeting the growing demand for power semiconductors. With strong customer support and promising financial projections, Infineon is poised for substantial growth in the coming years.
