Infineon opens Thailand plant as country ramps up chip push

German semiconductor manufacturer Infineon Technologies inaugurated a new facility in Thailand on Thursday, as the nation seeks to boost investments in the industry amid increasing regional competition. The 3.8 billion baht ($100 million) back-end manufacturing plant in Bang Bo, Samut Prakan, features up to 30,000 square meters of cleanroom space, which can be expanded to 150,000 square meters.

Infineon's chief operations officer, Alexander Gorski, emphasized the strategic significance of the investment, citing Thailand's close proximity to major markets like China. The company, which has 13 manufacturing sites across the US, Europe, China, and Southeast Asia, aims to potentially double its revenue with existing cleanroom capacity.

Additionally, this Thailand expansion supports Infineon's goal of offering dual sourcing to its clients, ensuring alternative production options if issues arise in other factories, such as the one in Malaysia. Thailand is targeting $18 billion in semiconductor investments by 2030, focusing on photonics, power electronics, and sensors as part of its long-term sector strategy.

So far, the country has attracted 910 billion baht ($23 billion) in semiconductor and advanced electronics investments between 2023 and July 2026. To bolster the sector, Thai authorities plan to train nearly 85,000 skilled workers and over 1,700 researchers by 2030. Global semiconductor sales are expected to reach $1 trillion this year, doubling to $2 trillion by 2035, fueled by the rapid growth of data centers powering artificial intelligence technologies.