The latest investment by global semiconductor company Infineon Technologies AG in Malaysia reflects foreign investors’ confidence in Malaysia, its Madani Economy initiative and its future.
CIMB Asean Research Institute (CARI) Asean Research and Advocacy chairman Tan Sri Munir Majid said this massive investment announcement should not be spoiled by the “unnecessary noises”, especially from those with a negative political agenda.
“More specifically, Infineon products are directly linked to sustainable industries, giving actual meaning to commitment to the green initiative that we should focus on,” he told Bernama.
On Thursday, Infineon Technologies announced the expansion of its Kulim facility to build the world’s largest 200-millimetre (mm) silicon carbide (SiC) power fabrication (power fab) plant, with an additional investment of up to five billion euros (1 euro=RM4.98) over the next five years.It said the investment would lead to an annual SiC revenue potential of about seven billion euros by the decade’s end, together with the planned 200-millimetre SiC conversion of Villach, Austria and Kulim, Kedah.
“This highly competitive manufacturing base will support Infineon’s SiC market share target of 30 per cent towards the end of the decade,” the company said in a statement.
Meanwhile, Sunway University professor of economics Yeah Kim Leng said the sizeable capital investment by one of the world’s leading semiconductor players affirms the country’s ability to attract high-tech investments in an increasingly competitive global industry.
“It is good news to job seekers and players in the firm’s supply chain and ecosystem. It also augurs well for stronger private investment to drive the country’s growth over the next few years,” he said.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz described Infineon’s additional investment in Kulim as a strong vote of confidence in the Madani Government’s investment policies.
“This expansion will not only create high-skilled employment opportunities but also position Malaysia as a frontrunner in driving green technologies, a crucial aspect of achieving global sustainable development goals.
“The cutting-edge power semiconductor technologies produced in Infineon’s SiC Power Fab is a milestone development towards elevating Malaysia’s position in the semiconductor industry while also fostering a partnership focused on creating a more sustainable future for our nation and the world,” he said separately in a joint statement by the Malaysian Investment Development Authority (Mida) and Infineon Thursday.
Universiti Keusahawanan Koperasi Malaysia associate professor Abu Sofian Yaacob said one of the main reasons why Infineon is willing to invest more in Malaysia is because the country has quite a substantial amount of rare earth elements.
He told Bernama that the rare earth element is essential in making high-tech consumer products and devices and for producing military equipment applications, global positioning system (GPS)-guided precision weapons and other defence electronics.
“Second, it coincides with the newly launched Ekonomi Madani, which encompasses goals and targets of achieving more productive and sustainable economies in the future.
“Besides those reasons, Malaysia offers a high-tech infrastructure with highly educated and skilled professionals.
“Last but not least, Malaysian investment policies have remained unchanged, although the governments have changed a couple of times in the last decade,” he added.
Source: Daily Express
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
