“Infineon is to set up a semiconductor chip factory worth around $10 billion.”
Malaysia is gaining more high-scale demand for the global supply chain, so Infineon Technologies opened a major semiconductor manufacturing complex in the country. Malaysia is attracting huge tech investment by creating over 4,000 job openings. The company shared that the new plant will focus on the manufacturing of power semiconductors that support decarbonisation in automotive, industrial, and data centre fields.
Infineon’s investment in Malaysia highlights the nation’s potential to attract more technology-based investment, which is seeking alternatives to China and Taiwan manufacturing amid geopolitical uncertainties. Malaysia is coming up as the global hub for packaging and assembling generated chips that are used in the making of data centres, electric vehicles and smartphones. Technology has favoured Malaysia due to the added advantage of skilled and low labour costs, while proximity to major markets and US-China tensions have disrupted the flow of chips globally.
In addition to creating jobs, major key players like Intel, ASE Technology Holding, and Amkor Technology in Malaysia have taken advantage of low-cost labour. They are spending billions on domestic semiconductor manufacturing. Once the second phase is completed, it will become the world’s largest silicon carbide power semiconductor manufacturing site.
Kuala Lumpur, the capital of Malaysia, has implemented policies to enhance its ecosystem, including $5.6 billion for incentives and establishing a chip-design hub. These initiatives help draw more investment in wafer production, front-end manufacturing, and Infineon, which is upgrading its capabilities.
