Recently, Infineon Technologies officially launched production at its new factory in Kulin, Malaysia, marking the birth of the company's largest power chip manufacturing base in history. In the next five years, it is expected to become the world's largest producer of silicon carbide (SIC) chips, further consolidating Infineon's leadership position in the power and microcontroller (MCU) markets.

With the increasing global demand for renewable energy, electric vehicles, and artificial intelligence data centers, Infineon is increasing its investment in wide bandgap semiconductor technology, particularly SiC and gallium nitride (GaN) technology. Compared to traditional silicon-based solutions, SiC technology has significant advantages in achieving doubled power density at the same size or providing the same power at half the size. This advantage makes SiC a popular choice, especially in high-performance applications.

Infineon expects its revenue from SiC related solutions to reach at least 600 million euros by the end of fiscal year 2024. To support this growth, the company also plans to invest an additional 5 billion euros in the second phase of factory construction. To ensure the realization of this ambitious plan, Infineon has received a € 1 billion advance payment and a design bid commitment of approximately € 5 billion from its clients. These funds will be used to further expand production capacity to meet the global market demand for high-performance power solutions.

The investment environment in Malaysia has also been strengthened against the backdrop of trade tensions between China and the United States. In 2023, the country's investment reached a record high of 329.5 billion ringgit, a significant increase of over 24% year-on-year. In this context, investments in the electrical and electronic, information and communication industries account for over 45% of the total investment, providing a good foundation for Infineon Technologies' expansion plans.

Infineon's factories will not only bring a large number of employment opportunities to Malaysia, but also promote further development of the local economy. Experts point out that with the continuous development of the semiconductor industry, Malaysia is expected to become an important electronic manufacturing center in the Asia Pacific region. This trend will attract more foreign investment and promote the improvement of related industrial chains.

In addition, Infineon's investment in Malaysia also reflects the deepening of its global strategic layout. The company is committed to meeting market demand through innovative technology and efficient manufacturing, while actively responding to global calls for sustainable development and clean energy. The promotion of SiC technology, especially in the fields of electric vehicles and renewable energy, will have a positive impact on the global energy transition.

Overall, the launch of Infineon Technologies' new factory in Malaysia is not only an important milestone in the company's development, but also a major highlight of the global semiconductor industry. With the continuous maturity of SiC technology and the rapid growth of market demand, Infineon will undoubtedly better promote its leadership position in the power supply and microcontroller fields, contributing to the global electrification process. In the future, we look forward to seeing more innovative products from Infineon and their positive role in driving sustainable development efforts.

Fushite Technology focuses on the field of power devices, providing customers with power devices such as IGBT and IPM modules, as well as MCU and touch chips. It is an electronic component supplier and solution provider with core technology.