German semiconductor manufacturer Infineon is opening a new factory in Malaysia, shortly after the company announced that a total of 2,800 jobs would be cut or relocated elsewhere.
The first products from the Kulim plant are expected to be delivered to customers this fall, Infineon CEO Rutger Wijburg said on Thursday.
The first phase, in which Infineon is investing €2 billion ($2.1 billion), is expected to be fully scaled up by the end of 2026 or early 2027. However, the company has already announced a further expansion of the plant in a second phase costing up to €5 billion. The planning for this expansion is flexible and can be accelerated or delayed in response to the market situation.
Infineon will use silicon carbide as the base material for its semiconductors in the new plant. Wijburg says the compound is more robust and enables highly efficient semiconductors. However, it is more difficult to use in the production process, making the products more expensive.
“This has added value for customers, especially when it comes to making something smaller, more efficient or more powerful,” Wijburg said. “If they can make the batteries smaller or have a higher energy output, it’s worth it.”
He did not disclose whether Infineon will also earn more from the more expensive chips. Typical application areas include electric cars, solar and wind power plants and AI data centers.
