Infineon, a German semiconductor manufacturer, will sell two backend manufacturing sites – one in Cavite, Philippines, and one in Cheonan, South Korea – to two subsidiaries of ASE. Following the transaction, ASE will take over operations with existing employees and further develop both sites to support multiple customers. ASE and Infineon have also entered into long-term supply agreements, ensuring that Infineon will continue to receive established services and services for new products.
The pooling of manufacturing volumes in Cavite and Cheonan under ASE's ownership is set to leverage mutual synergy potentials, creating growth opportunities for both parties. Alexander Gorski, EVP and Head of Backend Operations at Infineon, expressed confidence in the sale, emphasizing ASE's track record as a trusted partner and their potential to strengthen both fabs further. The strategic move aligns with Infineon's manufacturing strategy, provides mutual synergies, and bolsters supply chain resilience.
The Cheonan site, Infineon Technologies Power Semitech, is a backend manufacturing facility with around 300 employees, located 60 miles south of Seoul. Meanwhile, Infineon Technologies Cavite is a backend manufacturing site with over 900 employees in one of the Philippines’ fastest-growing and most industrialized provinces.
Both the automotive and power management market segments are strategic focus areas for ASE, positioning the acquisition of Infineon’s facilities in Cavite and Cheonan as a strong commitment to forming a strategic long-term partnership with Infineon. Dr. Tien Wu, Chief Operating Officer of ASE, highlighted this as a win-win solution that benefits the entire ecosystem from product companies to end consumers.
The transaction is anticipated to close toward the end of the second calendar quarter of 2024.
