November 30, 2023

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Malaysia Catalysing Green Technologies

Malaysia holds a significant position in the worldwide semiconductor supply chain, and additional investments from key industry players are in line with the National Investment Aspirations (NIA) and the New Industrial Master Plan 2030, which emphasise the importance of attracting high-value, high-tech investments to stimulate the nation’s economic progress.

The momentum towards decarbonisation is fueling swift progress in power semiconductors, especially those built on wide bandgap materials. One notable industry player, recognised for leadership in power systems, has undertaken a pivotal stride towards shaping the sector’s trajectory.

This entity is expanding its Kulim fabrication facility, transcending initial investment projections made in February 2022. The enterprise’s visionary plan entails the establishment of the world’s largest 200mm SiC (silicon carbide) Power Fab. In this endeavour, a supplementary allocation of up to €5 billion (around RM23 billion) over the ensuing five years is earmarked for the second phase of module 3 construction.

The Minister of Investment, Trade, and Industry (MITI) lauded this expansion as a significant stride in Malaysia’s odyssey toward advanced manufacturing capabilities. Beyond creating high-skilled job avenues, this venture bolsters Malaysia’s stature as a trailblazer in propelling green technologies, a vital conduit toward global sustainable development goals.

Such initiatives underpin Malaysia’s promising growth prospects. The innovative power semiconductor technologies harnessed within the SiC Power Fab are a pivotal advancement in augmenting Malaysia’s standing within the semiconductor domain, while nurturing a partnership centred on a more sustainable future.

The Chief Executive Officer of the Malaysian Investment Development Authority (MIDA) acknowledges the enterprise’s accomplishments in Malaysia. The company’s strides in advanced manufacturing, marked by consistent expansion and seamless integration of digital capabilities, garner commendation. MIDA’s dedication to facilitating industry players, including this enterprise, remains unwavering.

The objective is to foster further dynamism within the electrical and electronics (E&E) sector. This investment bears testimony to the nation’s commitment to fostering an all-encompassing and thriving economy, ushering diverse prospects for local talents and industry supply chains.

The CEO of the power company extended gratitude to the Government of Malaysia, with special mention to MITI and MIDA, for their instrumental roles in translating the enterprise’s ambitious vision into reality.

He noted that amid the dynamic surge observed within the silicon carbide market, its applications extend beyond the automotive sector, encompassing a diverse array of industrial realms, ranging from solar and energy storage to high-power EV charging. The Kulim expansion project is paramount in fortifying the enterprise’s pivotal standing within this rapidly evolving market.

Leveraging the industry’s unparalleled scale and distinctive cost-efficiency, the company strategically harnesses the competitive advantage inherent in its state-of-the-art SiC trench technology, expansive package portfolio, and unparalleled command over diverse applications. These factors collectively underscore the enterprise’s unique identity and triumphant trajectory within the industry landscape, he said.

The E&E sector, an instrumental driver of the Malaysian economy, steers growth and development, contributing nearly 7% of the GDP. A noteworthy glimpse into the first quarter of 2023 unveils approved investments worth RM2.06 billion, stemming from 16 projects and promising the generation of 1,729 higher-income employment avenues. Concurrently, E&E exports in the same period surged to RM142 billion, manifesting a 3.3% surge compared to the corresponding interval the previous year.


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