Saturday, June 27, 2026

Singapore, Malaysia look to nearly $8 billion in microchip factory investment


Infineon’s Malaysian operations in Kulim, Kedah

Southeast Asia is increasingly cementing its role as a global technology manufacturing hub, with Singapore and Malaysia leading the way in semiconductors.

The two countries now look to Taiwan’s UMC (UMC) and Germany’s Infineon to make two large investments in manufacturing facilities.

UMC said on February 24 it would invest $5 billion in a new microchip factory in Singapore, with production expected to start in 2024 to support the chip boom for 5G and automotive electronics. UMC added that the new factory will be built next to the existing one with a monthly capacity of 30,000 wafers, and the company has been producing microchips in Singapore for 20 years.

The company said in 2021 it would seek to expand capacity over the next three years and secure supply and prices for customers as a global chip shortage hit automakers particularly hard.

UMC’s customers include Qualcomm, AMD, MediaTek, Novatek, Realtek, Infineon, Rockchip and Allwinner.

Infineon to focus on power semiconductors in Malaysia

In the case of Infineon, it announced that it will invest $2.6 billion to build a third production line at its factory in Kulim, Kedah, Malaysia, which focuses on power semiconductors. Once fully equipped, the new modules are expected to bring in an additional 2 billion euros in annual revenue for the German company.

Infineon said the investment decision was driven by growing market demand for power semiconductors in electric vehicles, mobile devices, data centers, and the solar and wind energy industries.

Construction of the plant will begin in June this year and is targeted to start production in summer 2024, complementing Infineon’s European plants in Villach, Austria and Dresden, Germany. The company estimates that as many as 900 high-value jobs will be created for Malaysians.

In the semiconductor assembly and test services market, Malaysia accounts for about 12% of the global market share and plays a vital role in the industry’s global supply chain.



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Like many news organizations, we are struggling to survive in an age of reduced advertising and biased journalism. Our mission is to transcend today’s challenges and map the world of tomorrow through clear, reliable reporting.

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Infineon’s Malaysian operations in Kulim, Kedah Southeast Asia is increasingly cementing its role as a global technology manufacturing hub, with Singapore and Malaysia leading the way in semiconductors. The two countries now look to Taiwan’s UMC (UMC) and Germany’s Infineon to make two large investments in manufacturing facilities. UMC said on February 24 it would invest $5 billion in a new microchip factory in Singapore, with production expected to start in 2024 to support the chip boom for 5G and automotive electronics. The new facility will be built on the existing…

Infineon’s Malaysian operations in Kulim, Kedah

Southeast Asia is increasingly cementing its role as a global technology manufacturing hub, with Singapore and Malaysia leading the way in semiconductors.

The two countries now look to Taiwan’s UMC (UMC) and Germany’s Infineon to make two large investments in manufacturing facilities.

UMC said on February 24 it would invest $5 billion in a new microchip factory in Singapore, with production expected to start in 2024 to support the chip boom for 5G and automotive electronics. UMC added that the new factory will be built next to the existing one with a monthly capacity of 30,000 wafers, and the company has been producing microchips in Singapore for 20 years.

The company said in 2021 it would seek to expand capacity over the next three years and secure supply and prices for customers as a global chip shortage hit automakers particularly hard.

UMC’s customers include Qualcomm, AMD, MediaTek, Novatek, Realtek, Infineon, Rockchip and Allwinner.

Infineon to focus on power semiconductors in Malaysia

In the case of Infineon, it announced that it will invest $2.6 billion to build a third production line at its factory in Kulim, Kedah, Malaysia, which focuses on power semiconductors. Once fully equipped, the new modules are expected to bring in an additional 2 billion euros in annual revenue for the German company.

Infineon said the investment decision was driven by growing market demand for power semiconductors in electric vehicles, mobile devices, data centers, and the solar and wind energy industries.

Construction of the plant will begin in June this year and is targeted to start production in summer 2024, complementing Infineon’s European plants in Villach, Austria and Dresden, Germany. The company estimates that as many as 900 high-value jobs will be created for Malaysians.

In the semiconductor assembly and test services market, Malaysia accounts for about 12% of the global market share and plays a vital role in the industry’s global supply chain.



Support ASEAN News

Investvine has been the unanimous voice of ASEAN news for over a decade. From breaking news to exclusive interviews with key ASEAN leaders, we bring you authentic and engaging coverage for free – the stories that matter.

Like many news organizations, we are struggling to survive in an age of reduced advertising and biased journalism. Our mission is to transcend today’s challenges and map the world of tomorrow through clear, reliable reporting.

Support us now with a donation of your choice. Your contribution will help us understand important ASEAN stories, reach more people, and elevate the diverse voices of this dynamic and influential region.



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