This strategic move aims to balance in-house and external manufacturing for profitable growth, leveraging mutual synergies between the companies to drive industry growth and enhance supply chain resilience.
Infineon Technologies has announced the sale of two of its backend manufacturing sites to ASE, a leading provider of semiconductor manufacturing services. The facilities in Cavite, Philippines, and Cheonan, South Korea, will be acquired by ASE’s fully owned subsidiaries, ASE Inc. and ASE Korea Inc., respectively. This move is part of Infineon’s manufacturing strategy, which aims to balance in-house and external manufacturing for profitable growth.
The Cavite site, known as Infineon Technologies Manufacturing Ltd. – Philippine Branch, employs over 900 workers and is situated in a rapidly developing industrial region. The Cheonan facility, Infineon Technologies Power Semitech Co., Ltd., has around 300 employees and is located about 60 miles south of Seoul. Post-acquisition, ASE will take over operations at both sites, retaining current employees and expanding services to support multiple customers. Infineon and ASE have also entered into long-term supply agreements, ensuring Infineon’s continued access to essential services for its products and customers.
The transaction is expected to close by the end of the second calendar quarter of 2024, subject to the fulfillment of closing conditions. This partnership between Infineon and ASE is anticipated to leverage mutual synergies, drive growth, and enhance supply chain resilience in the semiconductor industry.
Alexander Gorski, EVP and Head of Backend Operations at Infineon, praised the high standards and competence of the teams at both sites and expressed confidence in ASE’s ability to further strengthen the facilities. Dr. Tien Wu, Chief Operating Officer of ASE, highlighted the strategic importance of the automotive and power management market segments and emphasized the partnership’s potential to create a win-win solution for the entire semiconductor ecosystem.
