Infineon Technologies AG has reached a final agreement to transfer its back-end manufacturing facility in Bangkok/Samut Prakan, Thailand, to its trusted supplier, Malaysia Pacific Industries Berhad (MPI). Alongside the factory transfer, Infineon has also signed a long-term supply agreement with MPI. Additionally, the two companies have agreed to strengthen their partnership and jointly develop innovative packaging solutions.

This strategic move brings a new semiconductor company into the country, further enriching the local semiconductor ecosystem. MPI is an investment holding company headquartered in Malaysia. Its subsidiaries, operating under the name Carsem, have been providing outsourced semiconductor assembly, packaging, and testing services (OSAT) to global customers for over 50 years.

George Lee, Executive Vice President and Head of Back-End Operations at Infineon, said: "Our employees have set high standards for product quality and will continue to strive under the new ownership." "MPI's business model will diversify the utilization of the factory through serving a wide range of customers. I believe this move will provide excellent long-term career prospects for the employees in Bangkok, allowing them to join MPI and take over the operation of all production-related staff. We will continue to work closely together to provide customers with mature products and cutting-edge solutions."

Mr. Manuel Zarauza Brandulas, Group Managing Director of MPI, said: "We are delighted to announce this acquisition, which represents a key step forward in our strategic growth plan." This acquisition demonstrates MPI's firm commitment to strengthening its long-term partnership with Infineon. We will continue to work closely together to explore synergies, develop solutions, and explore future win-win opportunities. This move is expected to bring long-term value to MPI, Infineon, and all relevant stakeholders. It is another milestone in our partnership with Infineon, and we hope this cooperation will continue for a long time.

Infineon is fully committed to developing its business in Thailand, which has a thriving semiconductor ecosystem and a reliable network of suppliers and partners. In addition to the cooperation with MPI, Infineon also started the construction of a new advanced back-end wafer fab in Samut Sakhon, south of Bangkok, in January 2025. These two decisions complement each other and will optimize Infineon's overall manufacturing layout in line with the company's strategy of combining internal manufacturing with reliable OSAT partnerships for efficiency and flexibility.

MPI will continue to develop its existing high-performance factory, which currently offers a wide range of standard packaging product portfolios for automotive, connected, and IoT solutions. The new back-end factory in Samut Sakhon will focus on frame-based power modules and wafer testing. The first building of the new back-end factory is scheduled to go into production in 2026. Subsequent capacity expansions will be managed flexibly based on market demand.

The transaction is expected to be completed in early 2026, subject to the satisfaction of all remaining closing conditions.