Infineon Reaches Milestone in China: Formal Opening of Suzhou Plant
Simultaneously, Infineon inaugurated an IT Development Center in Suzhou focusing on manufacturing processes. The development center will employ between 80 and 100 engineers which will support the backend Suzhou manufacturing fab and become part of the worldwide IT Manufacturing Center of Competence (CoC).
Infineon Technologies Suzhou Co., Ltd.Once completed, the facility will have a maximum capacity of up to one billion memory chips a year. The new company, located in the Suzhou Industrial Park, 80 km to the west of Shanghai, will operate under the name Infineon Technologies Suzhou Co., Ltd. Infineon holds 72.5 percent of the shares of the joint venture, China-Singapore Suzhou Industrial Park Venture Co. the remaining 27.5 percent.
The new facility will be developed in a number of stages as dictated by growth and trends in the global semiconductor market. Total planned investment in the project amounts to around US-Dollar 1 billion. When operating at full capacity, Infineon Technologies Suzhou will employ over 1,000 people.
With this cooperation, we are systematically expanding our presence in the future market of China, said Peter Bauer, CMO of Infineon Technologies AG. Infineon's partnerships with companies in China are well on track. We currently conduct business with several partners in the area of frontend and backend manufacturing. Of course, Infineon is also proud to have very good partnerships with customers all over China. The expansion of our R&D facilities in Shanghai and Xian are progressing nicely.
IT Development Center SuzhouThe IT development center Suzhou has been created to support Infineons IT activities in the Asia pacific region concentrating mainly on the manufacturing process including manufacturing execution system, equipment integration & high automation, data collection & analysis, and business intelligence systems. The development group will build and maintain systems for use in all Infineon production sites, worldwide, supporting Infineons standard manufacturing processes. The support group will integrate all regional IT services for Business, Manufacturing, R&D and Operational Systems.
The Suzhou development center gives us the opportunity to create services not currently available on the market; creating a critical mass to support not only our Asian fabs but to supply all Infineon manufacturing locations with standardized, up-to-date and leading edge technology, explained Karl Pomschar, CIO of Infineon Technologies. Given its proximity to the new production facility in Suzhou, its high cost efficiency, and strong support from the provincial government, Suzhou is the ideal location for this IT development center.
Infineon in ChinaInfineon has been a player in China since October 1994 (at that time still as Siemens Semiconductors). Today the company employs about 1,200 people in China and plans to grow its workforce here to more than 3,000 in the future. In Shanghai, the company cooperates with SMIC, which enables it to secure production capacities for memory chips without having to invest in its own facilities. In return Infineon licenses its leading 300 mm technology to its Chinese partner. In Suzhou, Infineon just inaugurated a joint venture for assembly and test of memory chips. In Wuxi, Infineon has a backend production facility for logic products, while the development center in Xi'an develops products for the communication segments and the automotive and industrial electronics sector. Infineon also has sales offices in Beijing, Shanghai, Shenzhen and Hong Kong.
Strategic collaboration with local partners is one of the key cornerstones of Infineon Technologies expansion strategy in China. In March 2003, Infineon has expanded its successful production cooperation for standard memory chips (DRAMs) with SMIC, Shanghai. Given its manufacturing expertise and extensive technology portfolio, it also provides its major Chinese customers with the highest quality and most cost-effective semiconductor solutions, to enhance their competitive advantage in the local and global marketplaces.