Infineon Technologies AG has announced plans to expand its existing backend operations in Indonesia, PT Infineon Technologies Batam. Particularly, the company will purchase real estate property from PT Unisem, a member of the Unisem Group.

The said premises close to Infineon’s existing backend manufacturing site include manufacturing buildings. Hence, this will double Infineon’s production area in Batam when fully operational.

Strengthens Supply Chain

The expansion of Infineon’s Batam site will 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,” said Alexander Gorski, Executive Vice President and responsible for

Infineon’s global Backend Operations.

Dr. Thomas Kaufmann, Executive Vice President and COO of Infineon’s Automotive Division, said the purchase will allow them to add backend capacities faster with the construction of a new site.  

“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,” said Kaufmann.

Part of Long-Term Investment Pitch

Production is expected to start in 2024. The expansion in Batam is part of Infineon’s long-term investment strategy, which foresees investments of approximately €2.4 billion for the 2022 fiscal year. PT Infineon Technologies Batam is a backend manufacturing site and employs over 2,000 employees. Located within the Batamindo Industrial Park, which is part of the Indonesia-Singapore-Malaysia growth triangle.

Infineon Technologies, as a semiconductor solutions provider, aims to make life easier, safer, and greener. Microelectronics from Infineon are the key to a better future. With around 50,280 employees worldwide, Infineon generated revenue of about €11.1 billion in the 2021 fiscal year ending September 30.