-
ASE Technology Holding Co., Ltd. and Analog Devices, Inc. have announced a new strategic collaboration in Penang, Malaysia, marked by the signing of a binding Memorandum of Understanding.
Under the proposed agreement, ASE plans to acquire 100 percent of the equity of Analog Devices Sdn. Bhd., including its manufacturing facility in Penang. Following the acquisition, the two companies intend to enter into a long-term supply partnership, with ASE providing manufacturing services for Analog Devices. Both companies also plan to co-invest in developing the skills and capabilities of the Penang workforce.
The Penang facility, established in 1994 and located in the Bayan Lepas industrial hub, spans more than 680,000 square feet. Once the acquisition is complete, ASE will integrate the site into its global network of IC packaging and testing operations. The move is expected to enhance ASE’s ability to meet increasing customer and supply chain demands while offering new opportunities for investment and innovation.
According to ASE Chief Operating Officer Tien Wu, the acquisition is a key step in expanding the company’s global manufacturing reach and flexibility. He said the agreement reflects ASE’s continued commitment to collaborate closely with Analog Devices in delivering advanced IC packaging and testing solutions for analog, mixed-signal, and digital signal processing products. Wu added that ASE looks forward to welcoming the Penang team and combining the strengths of both organizations to drive growth and innovation.
Vivek Jain, Executive Vice President of Global Operations & Technology at Analog Devices, emphasized that advanced assembly technology and resilient manufacturing are vital for the company’s long-term success. He said the partnership with ASE will expand the Penang factory’s capabilities and capacity, enhancing Analog Devices’ technology offerings and supply chain resilience while continuing to support customers and provide career growth opportunities for employees.
Both parties expect to finalize definitive agreements in the fourth quarter of 2025, with the transaction anticipated to close in the first half of 2026, pending customary closing conditions and regulatory approvals. After completion, ASE will take over operations at the Penang site, supporting both Analog Devices and other customers as part of its expanding global network.
Original – Analog Devices
-
Infineon Technologies AG and ASE Technology Holding Co., Ltd. announced that definitive agreements were signed under which Infineon will sell two backend manufacturing sites, one in Cavite, Philippines and one in Cheonan, South Korea, to two fully owned subsidiaries of ASE, a leading provider of independent semiconductor manufacturing services in assembly and test.
The plants currently run under the entity names Infineon Technologies Manufacturing Ltd. – Philippine Branch (Cavite) and Infineon Technologies Power Semitech Co., Ltd. (Cheonan) and will be acquired by ASE Inc. and ASE Korea Inc. respectively. Post the transaction, ASE will assume operations with current employees, and further develop both sites to support multiple customers. As such, ASE and Infineon have also concluded long-term supply agreements under which Infineon will continue to receive previously established services as well as services for new products to support its customers and fulfill existing commitments.
Infineon’s manufacturing strategy, with a balanced operations footprint combining in-house and external manufacturing, is an important pillar of the company’s profitable growth path. By pooling manufacturing volumes in Cavite and Cheonan under a new owner and offering highest-quality manufacturing services to the overall industry, Infineon and ASE will be able to leverage mutual synergy potentials, thus generating attractive growth potentials for both companies.
“We have excellent, highly competent teams and a great track record of highest quality standards at both sites, Cavite and Cheonan,” said Alexander Gorski, EVP and Head of Backend Operations at Infineon. “ASE has been a trusted, strategic partner of Infineon for many years and will be an excellent new owner that will continue on this successful path and strengthen both fabs even further. The sale of our sites to ASE is in line with Infineon’s manufacturing strategy, provides mutual synergies and enables further growth while strengthening supply chain resilience”.
“Both the automotive and power management market segments are strategic focus areas for ASE,“ said Dr. Tien Wu, Chief Operating Officer of ASE. “This acquisition of Infineon’s facilities in Cavite and Cheonan marks ASE’s strong commitment to form a strategic long-term partnership with Infineon in developing backend manufacturing solutions matching future growth opportunities. Given Infineon’s market leadership in automotive and power semiconductors and ASE’s leading position in backend semiconductor manufacturing, this partnership creates a win-win solution for the entire ecosystem from product companies to the end consumer.”
Infineon Technologies Power Semitech is a backend manufacturing site with around 300 employees. The fab is located in Cheonan, South Korea, about 60 miles south of Seoul. Infineon Technologies Cavite, is a backend manufacturing site with more than 900 employees. It is located in one of the fastest growing and most industrialized provinces in the Philippines.
The transaction is expected to close towards the end of the second calendar quarter of 2024, when all pending closing conditions will have been fulfilled.
Original – Infineon Technologies
