Infineon Completes Thailand Backend Fab Sale to MPI

Infineon Technologies has completed the sale of its backend manufacturing site in Bangkok/Nonthaburi, Thailand, marking another step in reshaping its global manufacturing footprint. The buyer is Malaysian Pacific Industries Berhad (MPI), a long-standing OSAT partner to Infineon.

The deal offers insight into how major IDMs are balancing in-house capacity with outsourced assembly and test, while also highlighting Southeast Asia’s growing role in advanced semiconductor manufacturing.

Strategic shift with continuity in Thailand

The transaction, completed on February 4, transfers the Bangkok/Nonthaburi backend facility to MPI, while Infineon secures a long-term supply agreement as part of the deal. MPI will take over operations and retain all production-related employees, providing continuity for the workforce and stability for ongoing programs. Infineon emphasized that the sale does not signal a retreat from Thailand. On the contrary, the company sees the move as complementary to its broader regional strategy. In January 2025, Infineon broke ground on a new backend fab in Samut Prakan, south of Bangkok, reinforcing its commitment to the country’s semiconductor ecosystem. Together, selling an existing site to a trusted OSAT partner and investing in a new in-house facility is intended to optimize Infineon’s manufacturing mix. The company has been increasingly vocal about combining internal production with reliable external partners to improve flexibility, resilience, and cost efficiency across its supply chain.

MPI expands OSAT footprint

For MPI, the acquisition strengthens its position as a global outsourced semiconductor assembly, packaging, and testing provider. Headquartered in Malaysia, MPI operates its OSAT business under the Carsem brand, which has been active for more than 50 years. MPI’s subsidiaries deliver advanced packaging and test services for a range of applications, including power management devices, wide bandgap technologies such as silicon carbide and gallium nitride, and custom sensors. End markets span automotive, AI, renewable energy, and communications — areas that align closely with Infineon’s core businesses. The Bangkok/Nonthaburi site adds to MPI’s manufacturing footprint and deepens its relationship with Infineon, which remains a key customer under the newly signed long-term supply agreement.

Balancing in-house fabs and partners

The deal reflects a broader industry trend, as leading chipmakers reassess where it makes most sense to own capacity and where to rely on specialized OSATs. By divesting a backend site while simultaneously building a new one nearby, Infineon is effectively fine-tuning its footprint rather than shrinking it. For Europe-based engineers and managers tracking global supply chains, the transaction underlines how strategic partnerships in Asia are becoming central to maintaining flexibility and scaling advanced technologies.