The German chipmaker is investing 48 billion baht to expand backend production in Thailand, with the site designed for phased growth but no wafer fabrication planned within three years.
Infineon Technologies is positioning Thailand as a longer-term manufacturing base for its semiconductor operations after committing 48 billion baht, or about $1.44 billion, to expand its assembly and packaging capacity in the country. Bloomberg reported that the German chipmaker sees the investment as a possible first stage in a wider industrial build-out, although a move into wafer fabrication is not expected within the next three years.
At the opening of the new backend site in Bangkok’s Samut Prakan province, Infineon said the facility is intended to strengthen and diversify its global production network and support future demand in semiconductors. The company said the site has been designed for phased expansion and could, over time, become one of its largest backend manufacturing operations. Infineon also said the project should support Thailand’s semiconductor ecosystem and create up to 1,000 skilled jobs.
Alexander Gorski, Infineon’s chief operations officer, said in Bangkok that Thailand’s appeal lies in its role as an Asian logistics hub, its established semiconductor supply chain and its neutral geopolitical position, according to Bloomberg. The company had already begun work on the site in 2025, when it said the project would help optimise its manufacturing footprint in Asia and meet rising demand for power modules at competitive cost, with support from Thailand’s Board of Investment.
The new plant also fits a broader restructuring of Infineon’s production base. The company said earlier this year that it completed the sale of a separate backend site in Bangkok and Nonthaburi to Malaysian Pacific Industries, while securing a long-term supply agreement with the buyer. That move, Infineon said, was intended to combine in-house manufacturing with outsourced semiconductor assembly and testing partnerships as it expands frontend capacity elsewhere.
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