The company announced today that it will invest about RM 3.8 billion (US$1 billion) in the new facility.Groundbreaking is targeted for early 2005, with activities scheduled to ramp-up in 2006, the company said. At full capacity, the fab will employ about 1,700 people.
"This new fab is an important step to continue our success in semiconductors for automotive and industrial applications. With this move, we are expanding our presence in the future market of Asia," commented Dr. Wolfgang Ziebart, President and CEO of Infineon Technologies, in a press statement.
The new plant complements Infineon’s existing production sites for non-memory products in Munich-Perlach, Regensburg, Villach, and Dresden, as well as Altis semi-conductors, 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 10 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, said Infineon.
According to market research company Strategy Analytics, the automotive semiconductor market amounted to about US$13.3 billion in 2003, up 14.1 percent from US$11.5 billion in 2002. Infineon is Europe’s No.1 manufacturer of automotive semiconductors with market share of 15 percent.
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