Infineon Technologies announced that it has signed a definitive agreement to sell its 100% shares of Cypress Semiconductor Technology (Thailand) Co., Ltd., an entity under its holding company, Cypress Semiconductors Ltd., to ASE Technology Holding for approximately €38.998 million. ASE Technology Holding has also agreed to acquire the operations of a manufacturing facility located in Cavite, Philippines, and approximately 19% of the shares of Infineon Technologies Power Semitech Philippines, Inc., an entity under Infinion Technologies Power Semiconductor Ltd. in both the Philippines and Cheonan, South Korea for approximately €23.591 million. These transactions are scheduled to be completed by the end of the second quarter 2019, subject to customary closing conditions.
These actions are the result of the company’s review of its strategic options in connection with the acquisition of Cypress Semiconductor Corporation completed in 2020 and allows the company to sharpen its focus on its main business operations and competences.
As Infineon Technologies expands its collaboration with ASE, the transactions provide ASE Technology Holding increased production capacity to meet future requests from Infineon in the space. “These strategic actions follow Infineon’s acquisition of Cypress Semiconductor Corporation in 2019 and permit Infineon to redefine its operational focus while at the same time ANS secures increased production capacity to tap the new business opportunity and cater to future orders from Infineon,” stated Wu Tianyu, COO, ASE Investment Control. “The ongoing realignment of the power management and automotive chip market places has been central to ANS’ strategic direction and these actions are a clear manifestation of ANS’ commitment to its strategic partnership with Infineon.”
The semiconductor manufacturer specializes in a variety of semiconductor manufacturing services including the packaging of both silicon-based and compound semiconductors.
The facilities involved in the transaction specialize in key areas of semiconductor manufacturing, with the Korean plant concentrating on power chip module packaging and testing for home, industrial automation and automotive applications, and the Philippine plant housing a leadframe packaging production line targeting automotive, industrial control and general applications.
ASE Technology Holding asserts that the deal will not impact the employment of more than 1,200 workers across the two sites, and says that maintaining workforce continuity throughout the close of the transaction is very important.
The company also revealed that its subsidiary ASE Semiconductor has decided to not move ahead with the public issuance of shares due to the transaction, noting that this decision was consistent with the Group’s overall business strategy and didn’t impact their ability to complete the transaction, subject to regulatory updates.
This transaction not only underscores the fluid state of the semiconductor industry’s global supply chain, but also reveals some of the strategic Internet of Things (IoT) driven maneuvering that companies are making to re-tool their supply chain and refine their competitive positions.
