Infineon has announced plans to invest approximately Infineon invests $1bn in the construction of a new front-end production plant in Kulim High Tech Park, Malaysia. The facility will mainly produce power and logic chips used in automotive and industrial power applications.
Groundbreaking is planned for early 2005. Ramp-up is scheduled for 2006. At full capacity, the plant will employ approximately 1,700 people.
“With this move, we are systematically expanding our presence in the future market of Asia,” commented Dr. Wolfgang Ziebart, President and CEO of Infineon Technologies. “Our continuous investment in Asia also reduces our market risk concerning fluctuations of the US dollar-to-Euro exchange rate.”
Infineon said the new plant complements its production sites for non-memory products in Munich-Perlach, Regensburg, Villach, and Dresden as well as Altis Semiconductors, a joint venture with IBM in Essonnes, France.
Due to strong penetration of electronics in vehicles as well as the ongoing substitution of semiconductor solutions for mechanical components, the worldwide automotive semiconductor market is expected to experience substantial growth of about ten percent over the next few years. More demanding requirements with respect to reliability, security, and weight as well as emission control and power reduction of cars, will also fuel growth.
According to the market research company Strategy Analytics, the automotive semiconductor market was worth around $13.3bn in 2003 growing by 14.1 percent from $11.5bn in 2002.