Infineon Postpones Construction of Second Phase of Malaysia's "Super Fab"

It was originally planned to continue to expand in the next few years, and Infineon expected that after the completion of the plant, it would become the world's largest and most competitive 200mm silicon carbide power semiconductor wafer plant. 

Infineon has secured significant support from both new and existing customers, with design orders totaling approximately €5 billion and advance payments of €1 billion. These orders span diverse industries, including automotive (six vehicle manufacturers), renewable energy, and industrial sectors. The second phase of Infineon's Kulim wafer plant was projected to create up to 4,000 jobs for the Malaysian workforce. 

However, Infineon has made the decision to postpone the construction in response to the ongoing cyclical downturn and sluggish recovery in the semiconductor market. 

This decision was made after Infineon released its fiscal year 2024 financial results on November 12, 2024. For the year ended September 30, 2024, the company reported a total revenue of €14.955 billion, an 8% decrease year-over-year. Despite this decline, Infineon achieved a profit of €3.105 billion, representing a solid 20.8% profit margin. 

Due to changes in market demand and potential economic uncertainties, the postponement of the second phase of the construction of the Kulim plant in Malaysia may be to ensure that the company remains financially sound and is prepared for future market changes.