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Electronics Production | June 08, 2009

Infineon expands its Backend Production in Wuxi, China

Infineon plans to expand its backend manufacturing plant in Wuxi, China, as part of the company’s overall activity to further optimize its manufacturing landscape and to shift mature backend manufacturing activities to best-cost countries.
Through 2011, Infineon will provide its Wuxi plant with additional staff and technology know-how, and transfer existing backend manufacturing equipment from another site to enhance assembly and test presence in China and build up Wuxi to achieve better economies of scale.

The Government of Wuxi supports Infineon’s expansion. Representatives of the Wuxi Government and Infineon today signed an agreement to further grow the high-tech industry in Wuxi. Infineon’s expansion plan will be substantially funded by credit lines from the Bank of China. The monetary equivalent of Infineon’s activities amounts up to US Dollar $150 million.

At present, the Wuxi plant employs approximately 830 people. Building upon Wuxi’s proven capability in volume production, Infineon expects to increase employees working at the Wuxi site to approximately 2,000 by 2011. Through the expansion, Wuxi will become Infineon’s major backend manufacturing site for leaded small signal discrete packages and will build the core competence to run high-volume production of a wide variety of discrete package types. Semiconductor technology differentiates between integrated circuits and discrete circuits, which typically fulfill one function only, such as blocking electrical current. Discrete devices are mainly used in communication, consumer, computing, automotive and industrial applications. Apart from discrete circuits, the Wuxi site also assembles and tests contact based and contactless chip card and security ICs.

In the course of the Wuxi expansion, Infineon will transfer backend activities from Malacca, Malaysia. Nevertheless, Malacca will continue to play an important role within the company’s backend manufacturing network and will fulfill additional tasks, such as the development of packages and production processes as well as tests.

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