January 16, 2025 /SemiMedia/ — Infineon has commenced construction of a highly automated backend assembly plant in Bang Pakong, Thailand, focused on producing power modules. The first building is scheduled to begin operations in early 2026, with production capacity and technical specifics yet to be disclosed. Further capacity expansions will be adjusted based on market demand.

Supported by Thailand’s Board of Investment (BOI), this project is a key part of Infineon’s strategy to diversify its manufacturing footprint. It aims to address the growing demand for power modules driven by global decarbonization and climate protection efforts, particularly in industrial applications and renewable energy sectors.

“Decarbonization and digitalization are major structural growth drivers for the semiconductor industry,” said Infineon COO Rutger Wijburg. “This state-of-the-art backend factory will enable us to meet future customer needs while enhancing supply chain resilience. This investment is a critical step in optimizing our manufacturing network and aligning with frontend capacity expansion.”

The factory will also contribute to the development of Thailand’s semiconductor ecosystem, supporting regional supply chains. Infineon has implemented comprehensive training programs to enhance skills in AI, digitalization, and automation, with the first group of Thai engineers completing training at other Infineon sites.

Additionally, Infineon CEO Jochen Hanebeck previously highlighted the company’s efforts to localize the production of commodity-grade products in China to better meet the needs of the Chinese market.