Infineon Technologies AG is expanding its existing backend operations in Indonesia through PT Infineon Technologies Batam by purchasing real estate from PT Unisem, a member of Unisem Group. The premises close to Infineon’s existing backend manufacturing site include manufacturing buildings that will double Infineon’s production area in Batam when fully operational. In the course of this expansion, 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: “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”.
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. It is located within the Batamindo Industrial Park and part of the Indonesia-Singapore-Malaysia growth triangle.
Recently as part of its long-term manufacturing strategy,, Infineon Technologies AG boosted its market leadership in power semiconductors by adding significant manufacturing capacities in the field of wide bandgap (SiC and GaN) semiconductors. Infineon is investing more than €2 billion to build a third module at its site in Kulim, Malaysia. Once fully equipped, the new module will generate €2 billion in additional annual revenue with products based on silicon carbide and gallium nitride. The expansion, following the company’s long-term manufacturing strategy, will benefit from the excellent economies of scale already achieved for 200-millimeter manufacturing in Kulim.
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