German chipmaker Infineon Technologies has opened a new silicon carbide (SiC) power semiconductor fabrication facility in Kulim, Malaysia.

The facility signals Malaysia’s ambition to grow their presence in the global semiconductor supply chain.

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Malaysian Prime Minister Anwar Ibrahim remarked, “Today’s events mark a major, a huge milestone… to showcase that we are able to attract world-class investments.”

The new factory, covering 141,640sqm with a roofed area of 60,000sqm, will generate 4,000 job opportunities, with 1,500 being high-value roles. The influx of jobs is set to improve the local economy and provide a range of employment options, including positions that can foster expertise in the workforce.

Infineon has invested €2bn ($2.2bn) in the first phase, with another €5bn ($5.5bn) planned for future expansion.

According to Jochen Hanebeck, Infineon’s CEO, production began “several months” ahead of schedule in part because of the new plant’s virtual connection with the company’s key production center in Villach, Austria.

Raj Kumar, Infineon Kulim’s senior vice president of technology and R&D said, “Compared with silicon-based power solutions, with SiC, we can double the power density in the same size, or we can put the same power in the half size.”

Infineon began its Malaysian operations in Melaka in 1973 and opened Asia’s first front-end fabrication plant in Kulim in 2006. Currently, Infineon employs more than 16,000 highly skilled workers in Malaysia.