Infineon Strengthens Supply Chain with New Backend Fab in Thailand

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Infineon Technologies AG has broken ground for a new semiconductor backend production site in Samut Prakan, south of Bangkok, optimizing and further diversifying its manufacturing footprint. After an official meeting with the Prime Minister of Thailand, Paetongtarn Shinawatra, at the Government House, Infineon's Chief Operations Officer Dr. Rutger Wijburg launched the construction of the new fab today.

The first building is planned to be ready for operations at the beginning of 2026. Further ramp-up will be managed flexibly in line with market demand. For 2025, all expenditures of the new site are already included in the Capex projections of the company. The project is supported by the Thailand Board of Investment (BOI). The highly automated fab will play a crucial role in diversifying Infineon's manufacturing landscape as global decarbonization and climate protection efforts drive demand for power modules, e.g. in industrial applications and renewables.

"As decarbonization and digitalization are strong structural growth drivers for the semiconductor industry, we are establishing a state-of-the-art backend fab in Thailand to meet future customer demand and strengthen supply chain resilience. 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 Rutger Wijburg, COO of Infineon. "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."

"The Thailand Board of Investment welcomes and supports the Infineon Technologies decision to invest in a new backend fab in Samut Prakan, Thailand. This strategic step underscores the importance of a close and reliable partnership between Infineon and the government of Thailand, and demonstrates the mutual confidence in Thailand's business environment and growth potential. The establishment of the National Semiconductor and Advanced Electronics Policy Committee in December 2024, along with Infineon's investment, will significantly enhance the regional semiconductor industry and ecosystem, positioning Thailand as a key player in the global semiconductor industry. We are committed to supporting the development of Thailand's electronics industry as well as the successful implementation of the expansion of Infineon's manufacturing site in the region," said Narit Therdsteerasukdi, the BOI's Secretary General.

Infineon will support developing a robust semiconductor ecosystem in Thailand, centrally located in Southeast Asia, covering key components and materials in the supply chain. By enhancing partnerships with local businesses and institutions, the company will strengthen the semiconductor ecosystem and the development of a skilled work force. Through close collaboration with universities and local entrepreneurs, Infineon helps to grow a talent pool of highly skilled engineers with expertise in advanced semiconductors. A comprehensive training and education program to improve competencies in AI, digitalization and automation has been developed. The first group of Thai engineers successfully completed this training program at other Infineon sites.

As Infineon is committed to achieve climate neutrality by 2030, decarbonization efforts are an integral part of design and construction of the new facilities. Continuously reducing its own carbon footprint along the entire value chain is a strategic priority of the company. The new site will be equipped with solar modules, generating its own renewable energy. Moreover, Infineon will closely collaborate with local energy suppliers to ensure a reliable and green power supply.