The semiconductor manufacturer Infineon is preparing for a further increase in demand for chips and is investing more than two billion euros in a new factory in Malaysia.
The plant is scheduled to go into operation in the second half of 2024.
At full capacity, it will enable two billion euros in additional annual sales with products based on silicon carbide and gallium nitride, the group announced on Thursday.
Infineon CEO-elect Jochen Hanebeck said the company sees sustained growth potential in these new materials.
"Innovative technologies and the use of green electrical energy are key elements for reducing CO2 emissions." Renewable energies and electromobility are the main drivers for strong and sustainable growth in demand for power semiconductors.
With the investment, Infineon underscores its claim to be the technology leader in silicon carbide and gallium nitride.
The two materials are regarded as future technology for controlling power consumption in electric cars or charging stations, among other things.
Gallium nitride can reduce energy losses during charging, which are reflected in waste heat, said the outgoing boss Reinhard Ploss at the virtual general meeting.
"If we use the opportunities in industrial and automotive applications correctly, we will also benefit from them later in other markets."
Ploss will retire at the end of March, his successor Hanebeck is currently responsible for the operational business.
His post goes to Rutger Wijburg, who was most recently responsible for ramping up production in Dresden.
Analysts fear overcapacity
Infineon is currently benefiting from the growing global demand for chips.
At the same time, the company is not progressing as quickly as hoped in expanding production;
Hanebeck recently spoke of longer delivery times for factory equipment when presenting the business figures.
Just a few months ago, Infineon commissioned a new plant in Villach, Austria.
But now the fear of overcapacity is growing among some stockbrokers.
The market is concerned that the semiconductor party could soon be over and that the production expansions currently being announced and already under construction would soon lead to overcapacities, said portfolio manager Markus Golinski from Union Investment.
"The risk is growing that rising inventories in some product areas could soon lead to a correction." Deka expert Cornelia Zimmermann said that production at semiconductor manufacturers is currently higher than sales.
"We hope that this market development will not lead to a massive build-up of inventories and that the semiconductors will gather dust on the shelves unused."