Daily Express Subscriber
Sign in to your account.

MELAKA: German semiconductor giant Infineon Technologies has pledged to invest RM3.25 billion in the country over a span of 10 years until 2029.

The announcement was made by Prime Minister Tan Sri Muhyiddin Yassin during his visit to Infineon’s plant in Batu Berendam here, today.

In a statement, the Prime Minister’s Office (PMO) said the multi-billion ringgit investment marks another milestone in the longstanding and multi-faceted partnership between Malaysia and Germany.

It also reflects the confidence among global investors in the stability and attractiveness of Malaysia as an investment destination in the Southeast Asian region.

“Through this multibillion ringgit investment, Infineon has indeed paved the way to expedite the semiconductor sector to move up the value chain towards higher-margin processes such as the Packaged Integrated Circuit.

“With 40 years of experience in automotive semiconductors, Infineon has proven its track record of driving the industry forward.

“Within the manufacturing sector, the electronics industry topped the chart as the main contributor, as partially reflected in investments from international companies like Infineon,” the statement read.

The manufacturing sector continues to be the key driver of the supply side of the Malaysian economy with a combined share of 22.3 per cent last year.

The Prime Minister, the PMO said, also stressed the firm and serious commitment of the government to further create a healthy investment climate in the country.

“The government will also continue with its efforts to make Malaysia the most attractive investment destination in Southeast Asia and constantly encourage existing investors to re-invest in the country,” it said.

During his visit to the plant, Muhyiddin took the opportunity to engage directly with Infineon managers and employees, listening to their opinions and suggestions, and the challenges they face with Covid-19 period.

Present during the visit was Senior International Trade and Industry Minister Datuk Seri Mohamad Azmin Ali, as well as Melaka Chief Minister Datuk Seri Sulaiman Md Ali. To date, Malaysia is the only country outside Germany where Infineon has both Wafer Fabrication and Assembly and Test facilities, comprising both “front-end” and “back-end” manufacturing processes.

Infineon Melaka has also grown from a conventional manufacturing site to one of the leading research and development centres.

With almost 9,000 employees, Infineon is also the largest employer in Melaka, contributing two per cent of the total work force in the state.

Infineon has been operating in Malaysia for 47 years.

Muhyiddin had earlier chaired the Economic Action Council meeting at a hotel here.

The Prime Minister also did a walkabout at the Bazar Rakyat here where handicraft, souvenirs and traditional Melaka food is sold.

He spent some 20 minutes mingling with traders and visitors at the bazaar.