Infineon Technologies has broken ground on a new semiconductor backend production facility in Samut Prakan, south of Bangkok, strengthening its manufacturing presence.
Following an official meeting with Thailand's Prime Minister, Paetongtarn Shinawatra, at the Government House, Infineon COO Rutger Wijburg inaugurated the construction of the new fab on January 14, 2025.
The first building is scheduled to open in early 2026. The company will manage further ramp-up according to market demands. All costs associated with the new facility are already factored into the company's capex plans until 2025, Infineon said in a statement.
The project has received funding from the Thailand Board of Investment (BOI). The highly automated facility will play an important role in expanding Infineon's manufacturing capabilities as global decarbonization and climate protection initiatives boost demand for power modules, particularly in industrial applications and renewables, the company added.
The German chipmaker will contribute to the development of a robust semiconductor ecosystem in Thailand, leveraging the country's strategic location in Southeast Asia and its access to critical components and materials in the supply chain.
Furthermore, Infineon aims to strengthen the semiconductor ecosystem and cultivate a skilled workforce by deepening connections with local firms and universities in Thailand. The company collaborates with academic institutions and local entrepreneurs to develop a talent pool of skilled engineers with advanced semiconductor expertise. It has implemented a thorough training and education program focusing on AI, digitalization, and automation. The initial cohort of Thai engineers has successfully completed this training program at various Infineon sites, according to the Germany-based firm.
"This investment is a key step in our strategy to further diversify our manufacturing footprint and optimize it in terms of costs while matching the expansion of our frontend capacities," said Wijburg. "Our new backend site is designed to operate with high efficiency, resilience, and quality, ensuring that we can reliably deliver high-quality products to our customers."