"Malaysia's continued appeal as a preferred investment destination comes with a well-established landscape for developing innovative and sustainable technologies.

"Infineon and other well-established German corporations' continued faith in Malaysia is a vote of confidence in Malaysia's new economic growth agenda premised on inclusivity and sustainability," Anwar said in the statement.

Infineon chief executive officer Jochen Hanebeck said the market for SiC had shown accelerating growth, not only in automotive but also in a broad range of industrial applications such as solar, energy storage and high-power electric vehicle (EV) charging.

"With the Kulim expansion, we will secure our leadership position in this market. With the industry's leading scale and a unique cost position, we are leveraging our competitive position of best-in-class SiC trench technology, the broadest package portfolio and unrivalled application understanding," Haneback added.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Infineon's expansion of its world-class silicon carbide facility in Kulim represented a significant milestone in Malaysia's journey towards developing advanced manufacturing capabilities.

"This expansion not only creates high-skilled employment opportunities, but also positions Malaysia as a frontrunner in driving green technologies, a crucial aspect of achieving our global sustainable development goals.

"We value the trust, confidence and recognition in Malaysia's promising growth prospects shown by esteemed German corporations like Infineon."

He added that the cutting-edge power semiconductor technologies produced in Infineon's SiC Power Fab is a milestone development towards elevating Malaysia's position in the semiconductor industry, while also fostering a partnership focused on creating a more sustainable future for our nation and the world.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said Infineon's advanced manufacturing operations and continuous expansion in the country, along with its adoption of new digital capabilities, were "truly commendable".