Infineon expands in the East

Infineon and the China-Singapore Suzhou Industrial Park Venture Company announced today that they are setting up a joint venture for the assembly of memory ICs in Suzhou, China.

Infineon Technologies and the China-Singapore Suzhou Industrial Park Venture Co. (CSVC), Ltd, Suzhou, China, are setting up a joint venture for the assembly and testing of backend memory ICs.

The agreement provides for the construction of a joint facility in the Suzhou Industrial Park (SIP), 80 km to the west of Shanghai. Once completed, the facility will have a maximum capacity of up to one billion chips a year.

The new company will operate under the name Infineon Technologies Suzhou Co, Ltd. Infineon holds 72.5 percent of the shares of the joint venture whilst CSVC hold the remaining 27.5 percent.

According to Infineon, the new facility will be developed in stages depending on by growth and trends in the global semiconductor market. Total planned investment in the project over the next ten years amounts to around $1 billion with the registered capital totalling $333 million. Infineon will contribute $ 241.4 million over the next five years as equity. CSVC will contribute $91.6 million.

When operating at full capacity Infineon Suzhou will employ over 1,000 people.

‘With this partnership we are systematically expanding our presence in the future market of China. We will gain access to new customers, and aim to capture a 40 percent share of the market for memory products in China,’ said Infineon President and CEO Dr. Ulrich Schumacher.

‘Overall, we intend to secure in China a place among the top four in the microelectronics business with a market share of more than 10 percent within the next five years. By then we will have about 3,300 employees in China.’

Work on constructing the new facility is scheduled to begin in October 2003 and the site should be ready for the equipment installation by mid-2004. Volume production is slated to commence in early 2005.

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