Both firms will run a dedicated packaging and testing facility within Amkor's Porto, Portugal-based manufacturing facility, with operations expected to start in the first half of next year


Infineon headquarters in Neubiberg, Germany. (Credit: Mucber/Wikimedia Commons)

Germany-based Infineon Technologies has entered into a multi-year partnership with Amkor Technology, a provider of semiconductor packaging and test services, to bolster the supply chain for semiconductor solutions across Europe.

Through the long-term deal, Infineon Technologies and Nasdaq-listed Amkor will expand the traditional outsourced semiconductor assembly and test (OSAT) business model and deepen their collaboration.

Both firms have decided to run a dedicated packaging and testing facility within Amkor’s Porto, Portugal-based manufacturing facility. The operations are anticipated to start in the first half of 2025.

Infineon Technologies will support an onsite team with engineering and development while Amkor will expand its Porto facilities and run the production line, while offering dedicated clean room space.

Amkor president and CEO Giel Rutten said: “We continue to invest in our Porto manufacturing site, expanding capacity as well as broadening our Advanced packaging and test technology portfolio.

“This collaboration represents another milestone for both companies in enhancing supply chain resiliency for advanced products supporting Automotive & Industrial end markets.”

The collaboration is anticipated to make the European semiconductor supply chain stronger and more resilient, especially benefiting clients in the automobile industry.

It will balance internal and external production capabilities, enhancing Infineon Technologies’ already diverse manufacturing base and outsourced backend manufacturing footprint in Europe, the German power systems and Internet of things (IoT) company said.

Infineon Technologies global backend operations executive vice president Alexander Gorski said: “Infineon and Amkor are jointly increasing geographical resilience and supply security for our customers. Together, we are strengthening Europe’s importance as a location for semiconductor manufacturing.

“For 20 years, Infineon has been successfully operating a large service centre in Porto, now with more than 600 employees. With the joint manufacturing centre, we are becoming even more deeply rooted in Portugal’s excellent semiconductor ecosystem. We are looking forward to further increasing our footprint in Portugal.”

In January, Amkor partnered with GlobalFoundries to advance semiconductor production across Europe. Furthermore, the semiconductor packaging and test services provider announced a $2bn advanced packaging and test facility in Peoria, Arizona in November last year.