By Adria Calatayud

Infineon Technologies plans an additional investment of up to 5 billion euros ($5.47 billion) over the next five years to expand its chip-making facilities in Kulim, Malaysia.

The German chip maker said Thursday that strong demand for power semiconductors supports its intention to expand the investment in Malaysia above the original plan outlined in February 2022, when the company said it would invest more than EUR2 billion to build a third module at its site in Kulim.

Infineon has received customer commitments covering around EUR5 billion for automotive and industrial applications and prepayments of about EUR1 billion, it said.

The planned expansion gives the company confidence its revenue from silicon-carbide operations will come in ahead of its target of EUR1 billion in fiscal 2025, and will reach about EUR7 billion by the end of the decade, Infineon said.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

August 03, 2023 02:04 ET (06:04 GMT)

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