February 11, 2026 /SemiMedia/ — Infineon Technologies has completed the sale of its backend manufacturing site in Bangkok to long-time packaging partner Malaysian Pacific Industries, as the German chipmaker reshapes its global production footprint.

The transaction closed on Feb. 4 and includes a long-term supply agreement, securing Infineon’s packaging and testing capacity while MPI takes over operations and retains the existing workforce.

Infineon said the move is part of a broader manufacturing realignment rather than a withdrawal from Thailand. In January 2025, the company began building a new backend wafer facility south of Bangkok focused on power semiconductor production. By selling older assets and investing in new capacity, Infineon aims to combine in-house manufacturing with outsourced services to improve flexibility and cost control.

For MPI, the acquisition strengthens its position in outsourced semiconductor assembly and test. Headquartered in Malaysia and operating OSAT services under its Carsem brand, MPI specializes in power devices and wide-bandgap technologies used in automotive and industrial markets.

Industry sources said the deal reflects a wider shift among integrated device makers, which are increasingly relying on OSAT partners for backend processes while concentrating internal resources on core technologies. As demand grows for automotive electronics, AI infrastructure and power management chips, Southeast Asia is emerging as a key hub for advanced packaging and backend manufacturing.