Infineon Technologies AG and ASE Technology Holding Co., Ltd. have forged a strategic long-term partnership in backend manufacturing solutions. Particularly, Infineon will sell two backend manufacturing sites, one in Cavite, Philippines and one in Cheonan, South Korea, to two fully owned subsidiaries of ASE.

Currently, the two plants run under the entity names Infineon Technologies Manufacturing Ltd. – Philippine Branch (Cavite) and Infineon Technologies Power Semitech Co., Ltd. (Cheonan). ASE Inc. will acquire the Philippine facility while ASE Korea Inc. will acquire the Korean facility.

Post transaction, ASE will assume operations with current employees, and further develop both sites to support multiple customers. As such, in the agreement, Infineon will continue to receive previously established services as well as services for new products. Moreover, to support its customers and to fulfill existing commitments. 

Manufacturing Synergies

Infineon’s manufacturing strategy aims for a balanced operations footprint combining in-house and external manufacturing. Hence, an important pillar of the company’s profitable growth path.

By pooling manufacturing volumes in Cavite and Cheonan under a new owner and offering the highest-quality manufacturing services to the overall industry. Thus, Infineon and ASE will be able to leverage mutual synergy potentials. Moreover, the deal will also generate attractive growth potential for both companies.

“We have excellent, highly competent teams and a great track record of highest quality standards at both sites, Cavite and Cheonan,” said Alexander Gorski, EVP and Head of Backend Operations at Infineon. “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”.

Meanwhile, Dr. Tien Wu, Chief Operating Officer of ASE said the automotive and power management market segments are strategic focus areas for ASE. For that reason, the acquisition 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,” said Wu.

Expands Portfolio

Infineon Technologies Power Semitech is a backend manufacturing site with around 300 employees. The fab’s location in Cheonan, South Korea is about 60 miles south of Seoul. On the other hand, Infineon Technologies Cavite is a backend manufacturing site with more than 900 employees. Its location is in one of the fastest-growing and most industrialized provinces in the Philippines.

ASE is a leading provider of independent semiconductor manufacturing services in assembly, test, materials, and system designs. In addition, it develops and offers a wide portfolio of technology and solutions including IC test program design, front-end engineering test. At the same time, wafer probe, wafer bump, substrate design and supply, wafer level package, flip chip, wire bond, system-in-package, final test, and electronic manufacturing services.