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Infineon to build the world’s largest 200-millimetre SiC Power Fab in Malaysia
6 November 2023
This decisive step to shape the global market is based upon the strong market growth for power semiconductors, in particular those based on wide bandgap materials.
Decarbonisation and rapid digital transformation driving demand
Accelerating the shift to decarbonisation, and the rapid digital transformation needed to support growth in the renewable energy, electric mobility, and other emerging technologies is predicted to drive demand in the semiconductor market. Leading the way in power systems, Infineon Technologies is now making a significant move to reshape the wide bandgap materials industry, which is expanding rapidly. This new, highly competitive manufacturing base will support Infineon’s SiC market share target of 30% towards the end of the decade. Infineon is confident that the company’s SiC revenue in the fiscal year 2025 will come in ahead of the target of €1billion.
“The market for silicon carbide shows accelerating growth, not only in automotive but also in a broad range of industrial applications such as solar, energy storage and high-power EV charging. With the Kulim expansion, we will secure our leadership position in this market,”
“With the industry’s leading scale and a unique cost position, we are leveraging our competitive position of best-in-class SiC trench technology, the broadest package portfolio and unrivalled application understanding. These factors are the areas of differentiation and success in the industry.”
Jochen Hanebeck, CEO of Infineon
Prepayments totalling around €1billion secure supply for major OEMs
Several OEMs pursuing stronger ties with the semiconductor manufacturer to secure chip supply have made prepayments. Infineon has been awarded new design wins of about five billion euros along with about one billion euros in prepayments from existing and new customers: In the automotive sector this includes six OEMs, three of them from China. Among the customers are Ford, SAIC and Chery. In the area of renewable energies customers include SolarEdge and three leading Chinese photovoltaic and energy storage systems companies. In addition, Infineon and Schneider Electric agreed on a capacity reservation including prepayments for power products based on silicon and silicon carbide. Infineon and the respective customers will provide more details in separate announcements in the near future. The prepayments will contribute positively to Infineon’s cash flow in the coming years and shall be fully repaid in connection with the agreed sales volumes by 2030 at the latest.
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