Semiconductor manufacturer Infineon Technologies said it was expanding its existing “backend” operations in Indonesia, buying property from Unisem Group.

The new premises close to an existing manufacturing site include buildings which will double the Infineon production area in Batam when fully operational.

Batam will increase assembly and test of automotive products.

Thomas Kaufmann, COO of the automotive division, said: “In view of increasing demand for automotive semiconductors and to the benefit of our customers, this purchase is allowing us to add backend capacities faster than with the greenfield construction of a new site.”

Production was expected to start in 2024. The expansion is part of the supplier’s long term investment strategy which will see EUR2.4 billion spent in the 2022 fiscal year.

Infineon Technologies Batam is a backend manufacturing site and employs 2,000 employees.

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It is located in the Batamindo Industrial Park and is part of the Indonesia-Singapore-Malaysia growth triangle.