German semiconductor maker, Infineon Technologies AG, announced on Thursday plans to invest 4 billion ringgit (1.3 billion U.S. dollars) to expand its operations in Malaysia's northern Kedah state over the next 10 years.
The company said it would build a new wafer fabrication facility called Kulim 2 that can produce 300mm wafers for the energy efficiency and automotive industries. "The decision to expand our operations in Kulim is a logical choice as it is a designated growth location for us. Kulim, being out first front-end wafer fabrication facility in Asia, has successfully established a clear competitive edge,"Infineon Technologies Vice President and Managing Director Thomas Reisinger said in a statement.
The 12,000-square-meter plant at the Kulim Hi-Tech Park in Kedah would be completed by the end of this year.
Once operational, production is expected to double the current 120,000 wafers per month capacity of the existing plant.