Infineon sells two manufacturing sites to ASE
German semiconductor manufacturer Infineon 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 assume operations with existing employees, and will further develop both sites to support multiple customers. Additionally, ASE and Infineon have concluded long-term supply agreements under which Infineon will continue to receive previously established services as well as services for new products.
By pooling manufacturing volumes in Cavite and Cheonan under a new owner, Infineon and ASE will be able to leverage mutual synergy potentials, which according to the companies will generate attractive growth potentials for both parties.
“We have excellent, highly competent teams and a great track record of highest quality standards at both sites, Cavite and Cheonan,” says Alexander Gorski, EVP and Head of Backend Operations at Infineon, in a press release. “ASE has been a trusted, strategic partner of Infineon for many years and will be an excellent new owner that will continue on this successful path and strengthen both fabs even further. The sale of our sites to ASE is in line with Infineon’s manufacturing strategy, provides mutual synergies and enables further growth while strengthening supply chain resilience”.
The plant in South Korea, Infineon Technologies Power Semitech, is a backend manufacturing site with around 300 employees. The fab is located in Cheonan, about 60 miles south of Seoul. Infineon Technologies Cavite, is a backend manufacturing site with more than 900 employees and is located in one of the fastest-growing and most industrialised provinces in the Philippines.
Both the automotive and power management market segments are described as strategic focus areas for ASE.
“This acquisition of Infineon’s facilities in Cavite and Cheonan marks ASE’s strong commitment to form a strategic long-term partnership with Infineon in developing backend manufacturing solutions matching future growth opportunities. Given Infineon’s market leadership in automotive and power semiconductors and ASE’s leading position in backend semiconductor manufacturing, this partnership creates a win-win solution for the entire ecosystem from product companies to the end consumer,” adds Dr. Tien Wu, Chief Operating Officer of ASE.
The transaction is expected to close towards the end of the second calendar quarter of 2024.
