August 7, 2024 /SemiMedia/ -- Infineon Technologies recently announced that it has completed the sale of its two back-end manufacturing facilities in Cavite, Philippines and Cheonan, South Korea to two wholly-owned subsidiaries of ASE.

Infineon's plant in Cavite, Philippines, focuses on lead frame packaging of automotive and industrial control chips, while its plant in Cheonan, South Korea, specializes in packaging and testing power chip modules for home appliances, industrial automation and automotive applications.

ASE will continue to operate with current staff and expand both factories to accommodate various customers. ASE and Infineon have therefore signed a long-term supply agreement, under which Infineon will continue to receive previously established services as well as services for future products to support its customers and fulfill existing commitments.

ASE said the acquisitions will strengthen its overseas production capabilities in power chip modules and lead frame packaging for automotive and industrial automation applications. The deals will also help ASE meet Infineon's growing future orders.

ASE has previously stated that it has accelerated the expansion of advanced packaging production and does not rule out building more factories in Japan, the United States or Mexico. ASE will also continue to expand its factory in Penang, Malaysia.