Infineon Technologies is undergoing a substantial expansion of its Kulim fab, surpassing its initial investment announcement in February 2022. The purpose of this expansion is to establish the world's largest 200mm SiC power fab. This expansion in Malaysia is supported by customer commitments amounting to approximately €5 billion for new design-wins in automotive and industrial applications, as well as approximately €1 billion in pre-payments.

Over the next five years, Infineon plans to invest an additional €5 billion in Kulim during a second construction phase for Module Three. This investment will contribute to an annual SiC revenue potential of around €7 billion by the end of the decade, in conjunction with the planned 200mm SiC conversion of Villach and Kulim.

By establishing its manufacturing base in Kulim, Infineon aims to achieve a 30 percent SiC market share target by the end of the decade. Additionally, the company is confident that its SiC revenue for the fiscal year 2025 will exceed the target of €1 billion.

Infineon's CEO, Jochen Hanebeck, expressed optimism about the growth of the SiC market, not only in the automotive sector but also in various industrial applications such as solar energy, energy storage, and high-power EV charging. Hanebeck believes that the Kulim expansion will solidify Infineon's leadership position in this market. He emphasized the company's competitive advantages, including its best-in-class SiC trench technology, extensive package portfolio, and deep application understanding, which are crucial factors for success in the industry.

Infineon has secured new design wins worth around €5 billion, along with prepayments of approximately €1 billion from both existing and new customers. Among the automotive sector customers are Ford, SAIC, and Chery. In the renewable energy sector, customers include SolarEdge and three prominent Chinese photovoltaic and energy storage systems companies.

Furthermore, Infineon has reached an agreement with Schneider Electric for a capacity reservation, including prepayments, for power products based on silicon and SiC. Infineon and its respective customers will provide more details in separate announcements in the near future. These prepayments will have a positive impact on Infineon's cash flow in the coming years and are expected to be fully repaid by 2030, in connection with agreed sales volumes.

The Prime Minister of Malaysia, Dato' Seri Anwar bin Ibrahim, commended Infineon for its dedication to green technology and sustainability, underscoring that the company aligns perfectly with Malaysia's vision. The Prime Minister viewed Infineon's continued faith in Malaysia as a vote of confidence in the country's new economic growth agenda, which emphasizes inclusivity, sustainability, knowledge transfer, quality investments, business enablement, and socio-economic well-being through equitable wealth distribution.

The Minister of Investment, Trade and Industry (MITI), Tengku Datuk Seri Utama Zafrul Aziz, praised Infineon's expansion of its SiC facility in Kulim as a significant milestone in Malaysia's development of advanced manufacturing capabilities. He emphasized the creation of high-skilled employment opportunities and positioning Malaysia as a leader in enabling green technologies, which are essential for achieving global sustainable development goals.