Infineon Technologies has completed the sale of its two backend manufacturing sites, one in Cavite, Philippines, and one in Cheonan, South Korea, to two fully owned subsidiaries of ASE, a Taiwan-based provider of independent semiconductor manufacturing services in assembly and test, according to the semiconductor IDM company.
ASE will continue operations with current personnel and expand both sites to accommodate various customers. As a result, ASE and Infineon have signed long-term supply agreements under which Infineon will continue to receive previously established services as well as services for future products to support its customers and meet existing commitments, said the German chipmaker.
Earlier this year, ASE disclosed plans to bolster overseas production by acquiring Infineon's backend assembly and testing facilities in the Philippines and South Korea for over NT$2.1 billion (US$66.37 million). Infineon's Philippine plant in Cavite primarily focuses on leadframe-based packaging for automotive and industrial control chips, while its South Korean facility in Cheonan specializes in packaging and testing power chip modules for home appliances, industrial automation, and automotive applications.
ASE stated that the acquisitions will enhance its overseas production capacity for power chip modules and leadframe packaging for automotive and industrial automation applications. The deals will also help ASE fulfill growing future orders from Infineon.
Tien Wu, COO for ASE's parent holding company ASE Technology Holding (ASEH), was quoted in previous reports as reiterating the OSAT's commitment to strengthening long-term partnerships with IDMs and developing backend manufacturing solutions for future growth opportunities. Given Infineon's leading expertise in automotive and power semiconductors and ASE's strong backend semiconductor manufacturing capabilities, their collaboration is expected to produce win-win solutions for the whole ecosystem, from product manufacturers to end users.
ASEH has stepped up production expansion for advanced packaging and does not rule out establishing additional facilities in Japan, the US, or Mexico, Wu was also quoted as saying in previous reports. ASEH will also continue expanding its factory site in Penang, Malaysia.
