Infineon sells manufacturing sites in Cavite, Philippines and Cheonan, South Korea to ASE, strengthening the strategic partnership of the two companies

Munich and Taipei – 22 February, 2024 – Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) and ASE Technology Holding Co., Ltd. (TAIEX: 3711/ NYSE: ASX) today announced that definitive agreements were signed under which Infineon will sell two backend manufacturing sites, one in Cavite, Philippines and one in Cheonan, South Korea, to two fully owned subsidiaries of ASE, a leading provider of independent semiconductor manufacturing services in assembly and test. The plants currently run under the entity names Infineon Technologies Manufacturing Ltd. – Philippine Branch (Cavite) and Infineon Technologies Power Semitech Co., Ltd. (Cheonan) and will be acquired by ASE Inc. and ASE Korea Inc. respectively. Post the transaction, ASE will assume operations with current employees, and further develop both sites to support multiple customers. As such, ASE and Infineon have also concluded long-term supply agreements under which Infineon will continue to receive previously established services as well as services for new products to support its customers and fulfill existing commitments. 

Infineon’s manufacturing strategy, with a balanced operations footprint combining in-house and external manufacturing, is an important pillar of the company’s profitable growth path. By pooling manufacturing volumes in Cavite and Cheonan under a new owner and offering highest-quality manufacturing services to the overall industry, Infineon and ASE will be able to leverage mutual synergy potentials, thus generating attractive growth potentials 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”.

“Both the automotive and power management market segments are strategic focus areas for ASE,“ said Dr. Tien Wu, Chief Operating Officer of 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.”

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

The transaction is expected to close towards the end of the second calendar quarter of 2024, when all pending closing conditions will have been fulfilled.

About ASE

ASE Technology Holding Co., Ltd. is the leading provider of independent semiconductor manufacturing services in assembly, test, materials and system designs. As a global leader geared towards meeting the industry’s ever growing needs for faster, smaller and higher performance chips, ASE Technology Holding develops and offers a wide portfolio of technology and solutions including IC test program design, front-end engineering test, wafer probe, wafer bump, substrate design and supply, wafer level package, flip chip, wire bond, system-in-package, final test and electronic manufacturing services.

Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The company has around 58,600 employees worldwide and generated revenue of about €16.3 billion in the 2023 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).

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