Infineon Technologies AG is expanding its Kulim fab – over and above the original investment announced in February 2022 – Infineon will build the world’s largest 200-millimeter SiC (silicon carbide) Power Fab. The planned expansion is backed by customer commitments covering about five billion euros of new design-wins in automotive and industrial applications as well as about one billion euros in pre-payments.
Over the next five years Infineon will additionally invest up to five billion euros in Kulim during a second construction phase for Module Three. The investment will lead to an annual SiC revenue potential of about seven billion euros by the end of the decade, together with the planned 200-millimeter SiC conversion of Villach and Kulim. This highly competitive manufacturing base will support Infineon’s SiC market share target of 30% towards the end of the decade. Infineon is confident that the company’s SiC revenue in the fiscal year 2025 will come in ahead of the target of one billion euros.
Infineon has been awarded new design wins of about five billion euros along with about one billion euros in prepayments from existing and new customers: In the automotive sector this includes six OEMs, three of them from China. Among the customers are Ford, SAIC and Chery. In the area of renewable energies customers include SolarEdge and three leading Chinese photovoltaic and energy storage systems companies. In addition, Infineon and Schneider Electric agreed on a capacity reservation including prepayments for power products based on silicon and silicon carbide. Infineon and the respective customers will provide more details in separate announcements in the near future. The prepayments will contribute positively to Infineon’s cash flow in the coming years and shall be fully repaid in connection with the agreed sales volumes by 2030 at the latest.
Sustainability is a key element in the planning, construction and operation of the fab. The building is designed in a way that allows Infineon to make responsible use of resources such as electricity and water.
