Infineon Technologies announces that they will divest two of their Asia-based backend manufacturing facilities. The plants in Cavite in the Philippines and in Cheonan in South Korea will be sold to the leading Taiwanese contract manufacturer ASE. The sale price was not disclosed. Infineon also announced that long-term supply agreements with ASE have been made to meet existing commitments.

The decision to divest from the two plants is part of Infineon's strategy to optimize production capacities and focus on core manufacturing areas. Backend production involves processing individual chips from the wafers to make them into manageable electronic components.

ASE is known for its expertise in assembling and testing semiconductors, making it the perfect partner for Infineon. The long-term supply contracts allow Infineon to continue benefiting from ASE's technical abilities and know-how.

The sale of the plants is expected to be completed in the third quarter of the fiscal year 2021, subject to the required regulatory approvals. However, Infineon emphasized that the separation from the plants will have no impact on the company's forecasts for the current fiscal year.

The news was received positively on the stock exchange. Infineon shares rose by 3.12 percent to 33.92 euros through XETRA trading. This development demonstrates investors' confidence in Infineon's strategy for optimizing their production capacities and the strong partnership with ASE.

Infineon's decision to divest from the two backend manufacturing sites and instead enter into long-term supply agreements with the renowned Taiwanese contract manufacturer ASE is a clear signal for a strategically smart and sustainable future orientation. With this action, Infineon strengthens its position as a global leader in the semiconductor industry while also relying on a strong partnership with ASE.