Singapore, Malaysia look forward to nearly $8 billion in microchip factory investment

Infineon’s Malaysian operations in Kulim, Kedah state

Southeast Asia is increasingly cementing its role as global technology manufacturing hub, with Singapore and Malaysia leading in the semiconductor sector.

The two countries are now looking forward to two massive investments in manufacturing facilities by Taiwan’s United Microelectronics Corporation (UMC) and Germany’s Infineon.

UMC said on February 24 it will invest $5 billion in a new microchip factory in Singapore, with production expected to start in 2024 to support the chip boom in 5G and auto electronics. The new facility will be set up next to an existing one and will have a monthly capacity of 30,000 wafers, UMC, which is producing microchip in Singapore for 20 years, added.

The company said in 2021 it will seek to expand capacity over the next three years and guarantee supplies and prices to its clients, amid a global chip shortage that has hit automakers especially hard.

UMC’s clients include Qualcomm, AMD, MediaTek, Novatek, Realtek, Infineon, Rockchip and Allwinner Technology.

Infineon to focus on power semiconductors in Malaysia

Infineon, for its part, announced that it will invest $2.6 billion to build its third manufacturing line at its Kulim plant in Kedah, Malaysia which is focusing on power semiconductors. Once fully equipped, the new module is expected to generate an additional €2 billion in annual revenues for the German company.

Infineon said that the investment decision has been driven by the ever-growing market demand for power semiconductors in electric vehicles, mobile devices, data centers, as well as in the solar and wind energy industry. 

Construction of the facility will begin in June this year with a target to commence production by summer 2024 to complement Infineon’s European locations in Villach, Austria, and Dresden, Germany. The company estimates there will be up to 900 high-value jobs created for Malaysians.

In the semiconductor assembly and testing services market, Malaysia accounts for about 12 per cent of global market share, holding a vital role in the industry’s global supply chain.



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[caption id="attachment_38252" align="alignleft" width="300"] Infineon's Malaysian operations in Kulim, Kedah state[/caption] Southeast Asia is increasingly cementing its role as global technology manufacturing hub, with Singapore and Malaysia leading in the semiconductor sector. The two countries are now looking forward to two massive investments in manufacturing facilities by Taiwan’s United Microelectronics Corporation (UMC) and Germany’s Infineon. UMC said on February 24 it will invest $5 billion in a new microchip factory in Singapore, with production expected to start in 2024 to support the chip boom in 5G and auto electronics. The new facility will be set up next to an existing...

Infineon’s Malaysian operations in Kulim, Kedah state

Southeast Asia is increasingly cementing its role as global technology manufacturing hub, with Singapore and Malaysia leading in the semiconductor sector.

The two countries are now looking forward to two massive investments in manufacturing facilities by Taiwan’s United Microelectronics Corporation (UMC) and Germany’s Infineon.

UMC said on February 24 it will invest $5 billion in a new microchip factory in Singapore, with production expected to start in 2024 to support the chip boom in 5G and auto electronics. The new facility will be set up next to an existing one and will have a monthly capacity of 30,000 wafers, UMC, which is producing microchip in Singapore for 20 years, added.

The company said in 2021 it will seek to expand capacity over the next three years and guarantee supplies and prices to its clients, amid a global chip shortage that has hit automakers especially hard.

UMC’s clients include Qualcomm, AMD, MediaTek, Novatek, Realtek, Infineon, Rockchip and Allwinner Technology.

Infineon to focus on power semiconductors in Malaysia

Infineon, for its part, announced that it will invest $2.6 billion to build its third manufacturing line at its Kulim plant in Kedah, Malaysia which is focusing on power semiconductors. Once fully equipped, the new module is expected to generate an additional €2 billion in annual revenues for the German company.

Infineon said that the investment decision has been driven by the ever-growing market demand for power semiconductors in electric vehicles, mobile devices, data centers, as well as in the solar and wind energy industry. 

Construction of the facility will begin in June this year with a target to commence production by summer 2024 to complement Infineon’s European locations in Villach, Austria, and Dresden, Germany. The company estimates there will be up to 900 high-value jobs created for Malaysians.

In the semiconductor assembly and testing services market, Malaysia accounts for about 12 per cent of global market share, holding a vital role in the industry’s global supply chain.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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