Infineon Opens $1.4 Billion Thailand Plant to Boost Chip Industry
German chip manufacturer Infineon Technologies launched a new facility in Thailand, as the second-largest economy in Southeast Asia aims to draw investment into the semiconductor sector amidst increasing regional competition.
The new plant close to Bangkok serves as a backend manufacturing location, where chips are transformed into finished and tested semiconductors, following an initial investment exceeding €100 million ($113.57 million), the company mentioned during a briefing.
Thailand's Board of Investment announced in a statement that the project was estimated at $1.4 billion.
The facility will start with as much as 30,000 sq m of cleanroom space—essential environments needed for semiconductor production—and has the potential to expand to 150,000 sq m, according to Infineon's Chief Operations Officer Alexander Gorski.
"It's a tactical long-term investment," Gorski stated, indicating Thailand's closeness to major markets like China. "We are ready for significant growth ahead."
According to Gorski, the company operates 13 manufacturing locations in the US, Europe, China, and Southeast Asia and can potentially increase its revenue by twofold using its current cleanroom space capacity.
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The expansion in Thailand is also a component of Infineon's strategy to provide dual sourcing to its clients, Gorski stated: "If issues arise in the factory in Malaysia, we can assist our clients via the factory in Thailand."
Thailand plans to attract $18 billion in semiconductor investments by 2030 with an emphasis on photonics, power electronics, and sensors, as a component of a broader long-term strategy for the industry, stated Board of Investment Secretary General Narit Therdsteerasukdi during the same briefing.
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From 2023 to July 2026, Thailand has attracted 910 billion baht ($27.12 billion) in investments within the semiconductor and advanced electronics industry, as stated in a presentation by Narit.
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In addition to financial incentives to lure new investments, Narit mentioned that Thai officials aim to train approximately 85,000 skilled laborers and more than 1,700 researchers for the industry by 2030.