Amkor, Infineon collaborate to fortify European semi supply chain

Jessie Shen, DIGITIMES Asia, Taipei 0


Infineon Technologies recently announced a multi-year partnership with Amkor Technology, a leading provider of semiconductor packaging and test services. Both companies have agreed on operating a dedicated packaging and test center at Amkor's manufacturing site in Porto, with operations set to commence in the first half of 2025.

With this long-term arrangement, Infineon and Amkor reinforce their relationship while expanding the traditional OSAT business model. Amkor will expand its Porto facilities and handle the production line, including a dedicated clean room, while Infineon will provide engineering and development support through an onsite team.

The collaboration enhances the European semiconductor supply chain and helps to make it more resilient, particularly for automotive clients. It enhances Infineon's already diverse manufacturing base by combining in-house and outsourced production capabilities.

In a separate statement, Infineon disclosed that the company maintained its dominant market position in automotive semiconductors in 2023. Based on the latest analysis by TechInsights, Infineon held an estimated 14% share of the global automotive semiconductor market last year.

The global market for automotive semiconductors expanded by 16.5% in 2023, attaining an all-time high of US$69.2 billion, as reported by TechInsights. Infineon's overall market share increased by 1% from nearly 13% in 2022, thereby consolidating the company's status as the worldwide frontrunner in the automotive semiconductor industry.

Infineon's automotive semiconductor revenues grew over 26% year-on-year in 2023, allowing the company to stretch its lead over its second and third-place rivals by 4%, aid Asif Anwar, executive director of automotive end market research at TechInsights, in Infineon's statement.

Infineon's semiconductors are essential in serving all automotive key applications like driver assist and safety systems, powertrain and battery management, comfort, infotainment, and security.

A major driver of Infineon's performance was strong automotive microcontroller (MCU) sales, according to the Germany-based IDM. For the first time, Infineon claimed to be the world leader in this market. The company's sales in the automotive MCU segment increased by nearly 44% compared to 2022, resulting in a global market share of around 29% in 2023.