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Infineon pumping in RM4bil

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It will expand facilities in Kulim Hi-Tech Park in next 10 years

GEORGE TOWN: Infineon Technologies Kulim is investing RM4bil for its operations in Kulim Hi-Tech Park (KHTP) over the next 10 years. The investment is to expand its manufacturing facilities and to develop a competency centre that will focus on technologies in the energy-efficiency and automotive industries.

The current focus of the KHTP plant is the manufacturing of energy-efficient chips for the automotive and power transmission industries, which are packaged in Infineon’s other plant in Malacca.

Infineon Technologies Kulim vice-president and managing director Dr Thomas Reisinger said the decision to expand in Kulim reflected Infineon’s strategy of driving its own organic growth.

“To pave the way for a smooth deployment of our strategic plans in the years ahead, continuous efforts are being taken to review all areas that will have an impact on our operations,” he said.

Competency centre: Reisinger (left) showing the model of the new plant to Sta Maria, Ploss, Phang, Halm and Amiruddin. The plant will focus on technologies in the energy-efficiency and automotive industries.

“We will strengthen our staff competency through training. Innovation and industrial engineering will also continue to shape our approach.”

Reisinger spoke at the roof launching for Infineon’s new plant in KHTP by International Trade and Industry Ministry secretary-general Datuk Dr Rebecca Fatima Sta Maria. Also present were Infineon board member Dr Reinhard Ploss, Germany’s honorary consul Datuk Herbert Weiler, Malaysian Investment Development Authority deputy chief executive officer Phang Ah Tong, Kedah state executive councillor Datuk Amiruddin Hamzah, and Infineon Technologies Kulim chief financial officer Peter Halm.

On Infineon’s new wafer plant, Reisinger said an initial investment of about RM350mil had been allocated for the project, which is scheduled to be completed by the end of 2012.

Infineon will be investing additional capital to equip the new plant. Known as Kulim 2, Infineon’s new wafer plant is designed to be a state-of-the art manufacturing centre for the production of 200mm wafers.

“The facility is also designed to be able to produce 300mm wafers should the market demand it,” Reisiinger said.

Once operational, Kulim 2 will employ approximately 1,000 more staff, 40% of whom will be highly skilled manpower. The production capacity is also expected to double at the Kulim plant.

Meanwhile, Sta Maria said the Government’s target was to increase the electronic and electrical (E&E) industry contribution to gross national income to RM90bil by 2020.

“The growth will create 160,000 jobs, mostly in the high-skilled and medium-skilled categories,” she said.

Sta Maria said to reach the target, the Government would create an environment that was hassle-free and conducive to doing business.

“We will continue to do away with unnecessary rules and regulations, minimise bureaucratic hurdles and provide an efficient and transparent public service,” she said.

“The E&E sector will engage in more sophisticated production and research activities that will require high-level skilled workers.

“We will ensure that more technically-competent people are trained at the graduate and post-graduate levels. We will also focus on improving the infrastructure for the E&E industry.”

Infineon Technologies Kulim is Infineon’s first wafer fabrication facility in Asia specialising in power and logic chips in industrial and automotive sectors. With an investment of US$1bil, the facility commenced operations in 2006.

The facility, with a present headcount of 1,500, has in place advanced manufacturing practices such as total paperless tracking system and use of green materials as well as solutions that reduce the facility’s carbon footprint.

The parent company, Infineon Technologies AG, Neubiberg, offers semiconductor and system solutions for energy efficiency, mobility and security.

In the fiscal year ended Sept 30, 2011, the company reported sales of 4 billion euros with close to 26,000 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange and on the over-the-counter market OTCQX International Premier in the United States.

Source : http://thestar.com.my/news/story.asp?file=/2012/5/11/business/11268722&sec=