Infineon sells sites in Philippines and South Korea

This transaction, announced on 22^nd February 2024, involves the transfer of two Infineon sites to fully owned subsidiaries of ASE, a global leader in semiconductor manufacturing services for assembly and testing. The facilities, known as Infineon Technolgies Manufacturing – Philippine Branch and Infineon Technologies Power Semitech, will be taken over by ASE and ASE Korea, respectively.

Following the acquisition, ASE will take over operations and retain the current workforce, with plans to expand the sites to accommodate multiple customers. Moreover, Infineon and ASE have established long-term supply agreements ensuring that Infineon continues to receive services for its existing and new product lines to meet customer demands and maintain its commitments.

This strategic move aligns with Infineon's manufacturing strategy, which aims for a balanced mix of in-house and outsourced production to support the company's growth. The consolidation of manufacturing operations under ASE's ownership is anticipated to create synergy and growth opportunities for both companies.

Alexander Gorski, EVP and Head of Backend Operations at Infineon, praised the high standards and competence of the teams at both sites, expressing confidence in ASE as the new owner to further enhance the facilities' success. He highlighted that the sale supports Infineon's strategic manufacturing goals, fosters synergies, and promotes growth while enhancing supply chain resilience.

Dr. Tien Wu, Chief Operating Officer of ASE, noted the strategic importance of the automotive and power management sectors for ASE and viewed the acquisition as a testament to ASE's commitment to building a long-term partnership with Infineon. This collaboration aims to develop backend manufacturing solutions that align with future growth prospects. The partnership is expected to benefit the broader ecosystem, from product companies to consumers, leveraging Infineon's leadership in automotive and power semiconductors and ASE's expertise in backend manufacturing.

The Cheonan facility, situated approximately 96 kilometres south of Seoul, South Korea, is a backend manufacturing site with about 300 employees. The Cavite site, located in a rapidly industrializing region in the Philippines, employs over 900 individuals. The transaction is slated for completion by the end of the second calendar quarter of 2024, pending the satisfaction of closing conditions.