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Infineon to build billion-dollar fab in Malaysia

Posted: 13 Dec 2004 ?? ?Print Version ?Bookmark and Share

Keywords:infineon technologies? wafer? power chip? logic chip? automotive?

Infineon Technologies AG is set to build a wafer fab for power and logic chips for automotive and industrial applications in Kulim High Tech Park, Malaysia, the company said Wednesday (Dec 8). The company said it plans to invest about $1 billion.

The groundbreaking at the site is planned for early 2005 with ramp-up of production taking place in 2006. At full capacity, the fab will employ approximately 1,700 people.

Infineon did not say whether the wafer fab would be constructed to manufacture on 200mm diameter or 300mm diameter wafers.

Strong penetration of electronics in vehicles as well as the ongoing substitution of semiconductor solutions for mechanical components and increased regulatory requirements are likely to drive the worldwide automotive semiconductor market to grow by 10 percent per year over the next few years, Infineon said.

"With this move, we are systematically expanding our presence in the future market of Asia," said Wolfgang Ziebart, president and CEO of Infineon Technologies, in a statement. "Our continuous investment in Asia also reduces our market risk concerning fluctuations of the U.S. dollar-to-euro exchange rate."

- Peter Clarke

Silicon Strategies

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