Skip to main content

Infineon's Unwavering Confidence in Malaysia

Empowering Malaysia in the Global Semiconductor Supply Chain

Published: 7.26.2023

Infineon Technologies, a leading global semiconductor manufacturer, has reaffirmed its confidence in Malaysia by announcing a $1.2 billion investment in a new semiconductor manufacturing plant in Kulim, Kedah. The plant is scheduled to be completed in 2024.


Infineon's unwavering confidence in Malaysia's investment ecosystem reflects the country's growing importance in the semiconductor landscape. Strategically positioned in Southeast Asia, Malaysia offers a robust infrastructure that appeals to multinational corporations seeking to expand their semiconductor manufacturing operations.


Aligned with its National Investment Aspirations and New Industrial Master Plan 2030, Malaysia is proactively attracting high-tech and high-value investments to bolster its domestic and global economic influence. The government's proactive measures, including tax incentives, research grants, and collaborations with educational institutions, encourage companies like Infineon to invest in research and development activities within Malaysia, strengthening its position in the semiconductor value chain. 


A skilled workforce is crucial for the success of any semiconductor hub, and Malaysia excels in this aspect. The country boasts a pool of highly trained engineers, scientists, and technicians, making it an ideal location for semiconductor companies seeking access to proficient human resources. Local universities and technical institutes consistently produce qualified professionals, ensuring a continuous talent pipeline for the industry. 


Infineon's substantial investment in Malaysia underscores the company's confidence in the nation's capabilities. With its wafer fabrication operations in Kulim, Kedah, and semiconductor chip packaging activities in Melaka, Malaysia plays a critical role in Infineon's global operations. The company's impressive RM28 billion investments in Malaysia reaffirms the nation's potential and significance in the global semiconductor supply chain. 


Infineon's presence in Malaysia not only validates the country's growing stature but also presents an opportunity to enhance the semiconductor ecosystem within Malaysia. Collaborations between multinational corporations and local suppliers facilitate knowledge transfer, skill development, and the growth of a robust semiconductor ecosystem, fostering innovation and contributing to economic progress. 


Infineon's investment and trust in Malaysia have a profound impact on the nation's economic growth. The company's presence stimulates job creation, elevates technological capabilities, and enhances exports, consolidating Malaysia's position as a key player in the global semiconductor market. The growth of the semiconductor industry further fuels the development of related sectors, contributing to the overall economic advancement of the nation. 


Infineon's unwavering confidence in Malaysia is a testament to the country's rising significance in the global semiconductor supply chain. Malaysia's strategic advantages, government support, skilled workforce, and attractive investment climate have solidified its position as an appealing destination for international companies seeking a foothold in the region. As Malaysia continues to foster an environment conducive to innovation and investment, it is well-positioned to sustain its growth and influence in the global technology landscape. Infineon's endorsement not only validates Malaysia's pivotal role in the global semiconductor market but also signals a promising future for the nation's technological progress and economic prosperity. 

Stay up to date
Read industry news, product offers, and events.
Join email list