Infineon to expand existing backend operations in Indonesia
The German semiconductor giant says it is expanding its existing backend operations in Indonesia: PT Infineon Technologies Batam to purchase real estate from PT Unisem.
The premises close to Infineon’s existing backend manufacturing site include manufacturing buildings that will double Infineon’s production area in Batam when fully operational, the company states in a press release.
In the course of this expansion, Infineon’s Batam site will also increase its focus on the assembly and test of automotive products.
“Infineon is making another step in strengthening its global operations network. We are committed to investing into continued structural growth and to strengthen the resilience of our supply chain,” says Alexander Gorski, Executive Vice President and responsible for Infineon’s global Backend Operations.
The company says that it expects production to start in 2024. The expansion in Batam is part of Infineon's long-term investment strategy, which foresees investments of approximately USD 2.4 billion for the 2022 fiscal year. PT Infineon Technologies Batam is a backend manufacturing site and employs over 2,000 employees. It is located within the Batamindo Industrial Park and part of the Indonesia-Singapore-Malaysia growth triangle.
“In view of increasing demand for automotive semiconductors and to the benefit of our customers, this purchase is allowing us to add backend capacities faster than with the greenfield construction of a new site,” adds Dr. Thomas Kaufmann, Executive Vice President and COO of Infineon’s Automotive Division.