Infineon Technologies is expanding its existing backend operations in Batam, Indonesia with the purchase of a facility from PT Unisem, a part of the Unisem Group.
PT Infineon Technologies Batam is a backend manufacturing site that employs over 2000 employees and is located within the Batamindo Industrial Park.
In semiconductor manufacturing, backend production "is initiated once the wafer has left the clean room," according to Infineon.
"This process includes checking the chips on the wafer, potentially necessary repairs of the chips, sawing of the wafers and packaging of the individual chips."
The facility, which includes manufacturing buildings, is close to Infineon’s existing operations and will double the company's production area in Batam when fully operational by 2024, the company said.
In the course of this expansion, Infineon's Batam site will increase its focus on the assembly and test of automotive products.
Infineon’s executive VP in charge of global backend operations, Alexander Gorski, said the expansion in Batam is part of the company’s long-term investment strategy, which foresees investments of approximately €2.4 billion (US$2.6 billion) for the 2022 fiscal year.
Gorski said the company is “making another step in strengthening its global operations network”.
“We are committed to investing into continued structural growth and to strengthening the resilience of our supply chain," he said.
Infineon’s executive VP and chief operating officer, Thomas Kaufmann, said the purchased facility would allow the company to add backend capacities “faster than with the greenfield construction of a new site".