Infineon opens a new plant in Thailand with an investment of over 100 million euros

German chipmaker Infineon Technologies opened a new plant in Thailand, near Bangkok, on Thursday, as Reuters reports, at a time when the country is trying to attract investment in the semiconductor industry amid regional competition.

The new plant is a “backend” production site — where chips are processed and tested as finished semiconductors — with an initial investment of over 100 million euros (113.57 million dollars), according to the company. The site will open with up to 30,000 square metres of “cleanroom” space and can be expanded to 150,000 square metres, said Infineon’s chief operating officer, Alexander Gorski, quoted by Reuters.

“It is a long-term strategic investment,” Gorski said, mentioning Thailand’s proximity to key markets such as China. “We are well prepared for strong growth in the future.” The company has 13 production sites in the US, Europe, China and Southeast Asia and, according to Reuters, could double its revenue with its existing cleanroom capacity.

The expansion in Thailand is part of Infineon’s “dual sourcing” efforts: “If something goes wrong at the plant in Malaysia, we can serve customers through the plant in Thailand,” Gorski added for Reuters. Thailand, for its part, aims to attract 18 billion dollars of investment in semiconductors by 2030, focusing on photonics, power electronics and sensors, said the secretary general of the Board of Investment, Narit Therdsteerasukdi.

Between 2023 and July 2026, Thailand has attracted 910 billion baht (27.12 billion dollars) in investment in semiconductors and advanced electronics. Thai authorities aim to train nearly 85,000 skilled workers and over 1,700 researchers for the sector by 2030, while global semiconductor sales are forecast to reach 1 trillion dollars this year and double to 2 trillion by 2035, driven by the growth of data centres for artificial intelligence technologies.