Infineon Technologies AG has reached a final agreement with Malaysian Pacific Industries Berhad (MPI) to transfer its backend manufacturing plant located in Bangkok/Nonthaburi, Thailand, to MPI. The transaction involves the entire equity of Infineon Technologies (Thailand) Ltd (IFTH), with a transaction value of 77.95 million US dollars. Since its establishment in 1984, the plant has been operating semiconductor assembly and testing businesses in Nonthaburi.

Background and Motivation of the Transaction

Infineon's sale of its Thailand backend manufacturing plant is part of its global production layout strategic adjustment. Infineon plans to further optimize production efficiency and flexibility through cooperation with MPI. Infineon has multiple production bases worldwide, and this transaction will enable it to focus more on core business and technology research and development.

At the same time, this transaction is not only an asset transfer but also a deepening of the cooperative relationship between Infineon and MPI. The two parties have signed a long-term supply agreement to ensure stable supply for Infineon in backend manufacturing. In addition, the two sides also plan to jointly develop innovative packaging solutions to meet the future market's demand for high-performance semiconductor products.

MPI is an investment-holding company headquartered in Malaysia. Its subsidiary has provided outsourced semiconductor assembly, packaging and testing services (OSAT) to global customers under the name of Carsem for over 50 years. This acquisition will introduce MPI to Thailand, further enriching the local semiconductor ecosystem and injecting new vitality into the development of Thailand's semiconductor industry.

Impact of the Transaction

This transaction will enable Infineon to more flexibly respond to market demand changes and optimize production costs. Through cooperation with MPI, Infineon can continue to utilize its production capacity and technical expertise in Thailand while focusing resources on more strategically significant projects. In addition, Infineon also plans to build a new advanced backend factory in Samut Prakan, Thailand, to further expand its production layout in Asia.

For MPI, this acquisition is an important step in its expansion in the Southeast Asia region. By taking over Infineon's backend manufacturing business, MPI will be able to expand its market share in the field of semiconductor assembly and testing. In addition, MPI will also benefit from Infineon's technology and customer resources, further enhancing its competitiveness in the global semiconductor market.

This transaction is expected to bring new investment and technology transfer to Thailand, promoting the development of the local semiconductor industry. With MPI's entry, Thailand's semiconductor ecosystem will be more complete, which will help attract more international semiconductor companies to the region.

Future Outlook

This transaction is expected to be completed in early 2026, when all relevant conditions will be met. In the future, Infineon and MPI will continue to cooperate in technological innovation and market expansion to jointly address the challenges and opportunities of the global semiconductor market. Through this strategic adjustment, Infineon will further consolidate its leading position in the global semiconductor market while making a positive contribution to the development of Thailand's semiconductor industry.

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