• Infineon will make chips for EV and data centers in Kulim

• Anwar wants to move Malaysia up the chip value chain

Anwar Ibrahim, center right, with Jochen Hanebeck, left, in Kulim on Aug. 8.Photographer: Samsul Said/Bloomberg

Malaysia is gaining more heft in the global supply chain as Infineon Technologies AG opens a major semiconductor manufacturing complex in the country, the Southeast Asian nation’s prime minister said.

“We are now be able to receive and expand the technology. It shows Malaysia is now going up the ladder,” Malaysian Prime Minister Anwar Ibrahim said yesterday at the opening ceremony of the first phase of Infineon’s 7 billion euros (US$7.7 billion) production site in the northern Malaysian district of Kulim.

Anwar highlighted the need for the local governments and universities to help train the necessary talent to better accommodate Kuala Lumpur’s efforts to bulk up the local chip industry. This comes as major governments around the world are spending tens of billions to bolster the domestic production of semiconductors, a commodity that is regarded as one of the most strategic goods for nations to develop emerging technologies.

Infineon chief executive officer Jochen Hanebeck said that the new Kulim campus progressed ahead of its original schedule and it would become the world’s largest silicon carbide power semiconductor manufacturing site once the second phase is completed.

The new plant is to focus on making power semiconductors that can help with decarbonization in the automotive, industrial and data center fields. It is expected to eventually create a total of 4,000 jobs, Infineon said.

Infineon’s investments in Malaysia highlight the Southeast Asian nation’s potential to attract more technology investments at a time when major chip firms are seeking alternatives to China and Taiwan for manufacturing given increasing geopolitical uncertainties.

Malaysia has in past years emerged as a global hub for packaging and assembling. Major players including Intel Corp and ASE Technology Holding Co (日月光投控) have taken advantage of its skilled and low-cost labor, and proximity to major markets.


Bloomberg / Yuan Gao