ASE spent NT$2.1 billion to acquire Infineon’s packaging and testing plants in the Philippines and South Korea

ASE Investment Holdings announced on February 22 that it would invest approximately NT$2.1 billion to acquire Infineon's two back-end packaging and testing plants in the Philippines and South Korea. The transaction could be completed by the end of the second quarter of this year at the earliest.

Infineon and ASE Investment Holdings announced simultaneously in the afternoon that Infineon will sell two back-end packaging and testing plants in Cavite, Philippines and Cheonan, South Korea to ASE Investment Holdings.

Among them, the transaction amount of Infineon Technologies Manufacturing Ltd in Cavite Province, Philippines is approximately 38.998 million euros (approximately NT$1.32 billion), which ASE acquired through the acquisition of 100% of the common shares of the upper-level holding company Cypress Manufacturing, Ltd.; Infineon located in Cheonan City, South Korea Technologies PowerSemitech Co., Ltd., a Korean subsidiary of ASE, acquired it for approximately 23.591 million euros (approximately NT$798 million). The two transactions are expected to be completed as soon as the end of the second quarter of this year.

Previously, Infineon acquired Cypress Semiconductor Technology in 2019.

It is reported that Infineon’s packaging and testing plant in South Korea has 300 employees, and the packaging and testing plant in the Philippines has more than 900 employees. ASE said that employees from the two local plants will continue to be retained.

ASE recently stated that the scale of capital expenditures this year is expected to increase by 40% to 50% compared to last year, of which 65% will be used for packaging, especially advanced packaging projects. ASE CEO Wu Tianyu pointed out that this year’s revenue from advanced packaging and testing will account for a higher share, and AI-related high-end advanced packaging revenue will double, increasing by at least US$250 million. The legal person estimates that the capital expenditure of ASE Investment Holdings this year will exceed 2.1 billion US dollars, and may reach 2.25 billion US dollars, a new high since the establishment of Venture Capital Investment Holdings.