With Thailand’s growing semiconductor sector and supportive investment policies, Infineon aims to optimize costs and align with its expanding capacities.
Infineon Technologies, announced the commencement of construction on a new semiconductor plant in Samut Prakan, Thailand, a move aimed at expanding its manufacturing footprint in Southeast Asia. This new facility, which will begin operations in early 2026, marks Infineon’s first power module production site in Thailand. The plant will focus on back-end processes following circuit formation and will complement the company’s existing production site located north of Bangkok.
The new investment is a key part of Infineon’s strategy to diversify its manufacturing operations beyond Malaysia, optimize costs, and align with the company’s expanding frontend capacities. Rutger Wijburg, Infineon’s Chief Operations Officer, highlighted that this step is essential to strengthening the company’s global manufacturing footprint. He also emphasized the importance of sustainable and environmentally friendly investments in the region during a meeting with Thai Prime Minister Paetongtarn Shinawatra.
In recent years, Thailand has intensified its efforts to attract semiconductor companies. In October, a semiconductor policy committee was formed, chaired by Prime Minister Shinawatra, to promote the industry. The Thailand Board of Investment has been offering incentives such as corporate tax breaks to encourage foreign investments in semiconductor manufacturing. Notably, the Thai government has partnered with companies like PTT, a state-owned oil and gas firm, and Hana Microelectronics, which is set to begin front-end production in 2027.
This move by Infineon underscores the growing importance of Southeast Asia in the global semiconductor supply chain and the region’s increasing appeal as a hub for advanced manufacturing. With Thailand’s supportive policies and growing semiconductor sector, Infineon is positioning itself to strengthen its presence and further contribute to the global tech industry’s evolution.