Infineon's new plant in Malaysia is celebrated by the country's prime minister as a step towards becoming a leading chip hub.

• Malaysia has emerged as a popular manufacturing hub for chips due to several reasons, as stated by Prime Minister Anwar Ibrahim.
• As U.S.-China tensions rise, multinational companies are expanding their presence in Southeast Asia to diversify their operations.
• Infineon has commenced the initial phase of a new silicon carbide factory in Kulim, which the company claims will be the largest in the world.

At the opening ceremony of a semiconductor fabrication facility in Malaysia's Kulim district, Prime Minister Anwar Ibrahim highlighted the country's appeal as a chipmaking hub.

"Our political stability is evident through our clear energy transition, industrial policy, and semiconductor policies," he stated to JP Ong of CNBC.

Anwar stated that Infineon's participation in the project has shown the investors "in a big way" the company's confidence in the country's semiconductor ecosystem, which has helped generate more interest.

Infineon has commenced the initial phase of a new silicon carbide factory in Kulim, which the company claims will be the largest in the world.

As U.S.-China tensions rise, semiconductor manufacturing companies are increasingly choosing Malaysia as a key location for their operations, diversifying their operations.

In December 2021, Intel announced plans to invest over $7 billion to expand its chip packaging and testing operations in Malaysia. The company's first overseas production facility began in 1972 with a $1.6 million investment in an assembly site. Intel subsequently added a full test facility and a development and design center in Malaysia.

In September 2020, GlobalFoundries launched a new hub in Penang to enhance its worldwide manufacturing network, alongside its existing facilities in the U.S., Europe, and Singapore.

The prime minister assured that Malaysia's professionals and students possess the ability to meet the growing sector's talent demands.

Anwar stated that our duty in the government is to streamline the process and ensure that we allocate sufficient funds for that purpose.

Anwar stated in September that the government aims to entice skilled Malaysians to return and contribute to the country's semiconductor engineering sector, with a goal of training and upskilling 60,000 individuals over the next ten years.