Infineon Technologies AG is expanding its semiconductor footprint in Thailand with a 48 billion baht (US$1.44 billion) investment, while signalling that the country could eventually host wafer fabrication operations.
Bloomberg reported that Infineon Chief Operations Officer Alexander Gorski said the expansion of Infineon’s assembly and packaging presence could mark an initial step towards front-end semiconductor production, although such a move is not expected within the next three years.
The investment covers five modules spanning power-module manufacturing, semiconductor testing and a research and development centre, with the first phase opening on Oct 1.
The facilities will support semiconductor production for electric vehicles, energy systems and data centres.
Gorski said Thailand’s established semiconductor supply chain, logistics connectivity and neutral geopolitical positioning strengthened its appeal as a long-term manufacturing base for Infineon.
The expansion comes as Thailand pushes to secure a larger role in the global semiconductor and artificial intelligence supply chain, with the government targeting at least 500 billion baht in semiconductor investment within five years and 2.5 trillion baht by 2050.
Thailand’s Board of Investment also plans to introduce tailored incentives for upstream semiconductor production and advanced back-end manufacturing, with photonics, power electronics and sensors identified as priority areas.
