11 May 2012
Infineon's RM4b Reinvestment Undertaking

Business Times

By Marina Emmanuel

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Malaysia's ability to promote the development of high technology industries is a key reason for the company's huge reinvestment plan. German semiconductor giant Infineon Technologies AG will be pumping in another RM4 billion into its Malaysian operations over the next decade.

Malaysia's ability to promote the development of high technology industries is a key reason for the company's huge reinvestment plan.

Dr Reinhard Ploss, a member of Infineon's management board, yesterday expressed the group's satisfaction with its front-end wafer fabrication facility in Kulim, Kedah, which was set up seven years ago and had seen US$1 billion (RM3 billion) ploughed in.

"Our Kulim 1 facility is a remarkable success story as it has not only shown a strong track record in production capacity but also in quality of output. Our customers are pleased with our zero-defect technologies.

"We are confident that our investment will yield a positive return in due course. We have full faith in our team here in Malaysia and in the government to provide the necessary support."

Ploss this said during a ceremony that saw the Neubiberg-based group announcing plans to set up a manufacturing competence centre at the Kulim Hi-Tech Park.

The event was officiated by International Trade and Industry Ministry secretary-general Datuk Dr Rebecca Fatima Sta Maria.

It was also attended by Infineon Technologies Kulim vice-president and managing director Dr Thomas Reisinger and Germany honorary consul Datuk Herbert Weiler.

Reisinger said Infineon had started construction of the new facility, dubbed "Kulim 2", which has the capability to produce 300mm wafers and is due for completion by the end of the year.

The state-of-the-art manufacturing competence centre will produce megatrend technologies for the energy efficiency and automotive industries.

Work on the shell of Kulim 2 to create 12,000 sq metres of clean room space started in August last year.

Reisinger said Infineon's decision to expand its Kulim operations reflected its strategy of driving its own organic growth.

"Being our first front-end wafer fabrication facility in Asia, Kulim has successfully established a clear competitive edge, and we have demonstrated the capability to output high volumes at high technological complexity.

"I would also like to mention that the presence of our neighbour SilTerra was an enabler for Infineon's decision to settle down in Kulim," he said.

SilTerra Malaysia Sdn Bhd is a semiconductor wafer foundry also located at the science park in Kulim and services customers in the US, Taiwan, South Korea and China.

In her speech, Sta Maria traced Infineon's investment history in Malaysia, which began in 1973 in Malacca.

She highlighted Malaysia's journey from basic assembly operations to the production of high-end industrial and consumer products.

"World-class electrical and electronics centres have been developed in the Klang Valley, Penang and places like Kulim and Malacca.

"The government's continued commitment to support the growth and development of the E&E industry will focus on securing improvements in the areas of regulatory framework, human capital and infrastructure," Sta Maria said.


About SilTerra Malaysia Sdn. Bhd.

SilTerra Malaysia Sdn Bhd is a semiconductor wafer foundry offering fabrication and design support services in CMOS logic, High-Voltage, Mixed-signal, RF and MEMS technologies down to 90 nanometer feature size. SilTerra's wafer fab has a design-in capacity of 40,000 eight-inch wafers per month and currently serves customers in US, EU, Latin America, Taiwan, Korea and China.

Environmentally vigilant, SilTerra delivers award winning, world-class performance to its customers seeking flexible capacity, custom technologies, competitive advantages and around the clock customer support. SilTerra is ISO 9001:2008 and ISO 14001 certified. Starting commercial production in 2001, the company's headquarters and factory are located in Malaysia's Kulim High-Tech Park, with sales and marketing offices in San Jose(California) and Hsinchu(Taiwan).

For additional information on SilTerra or its services, please visit www.silterra.com.


SilTerra Malaysia Sdn Bhd Contact

Koh Meng Kong
Tel: +6012-491-0425
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Lu Ping Chiang
Tel: +886-3-574-1587
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David Chang
Tel: +1-408-530-0886
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