MUNICH & TEMPE, Ariz. & PORTO, Portugal – In a move aimed at bolstering the European semiconductor supply chain, Infineon (OTC:IFNNY) Technologies AG (FSE: IFX / OTCQX: IFNNY) has entered into a multi-year partnership with Amkor (NASDAQ:AMKR) Technology, Inc. (Nasdaq: AMKR), a prominent provider of semiconductor packaging and test services.
This collaboration will see the establishment of a dedicated packaging and test center at Amkor’s facility in Porto, with operations slated to begin in the first half of 2025.
The partnership represents an evolution of the traditional outsourced semiconductor assembly and test (OSAT) business model. Amkor will be responsible for expanding its Porto site to accommodate the new production line, including providing dedicated clean room space. Infineon will support the endeavor with an onsite team specializing in engineering and development.
This joint venture is expected to enhance the region's semiconductor manufacturing capabilities, particularly for the automotive sector, and to contribute to a more resilient European supply chain. It builds on Infineon’s existing presence in Porto, where the company has operated a large service center for two decades, employing over 600 staff members.
Alexander Gorski, Executive Vice President of Infineon, expressed his enthusiasm about deepening the company’s partnership with Amkor, emphasizing the goal of increasing geographic resilience and supply security for customers. Giel Rutten, Amkor’s president and CEO, echoed these sentiments, highlighting the investment in Porto’s site expansion and the broadening of their advanced packaging and test technology portfolio.
The collaboration is viewed as a strategic step toward reinforcing Europe’s role in the global semiconductor industry and is in line with both companies' ongoing commitment to supporting advanced products for the automotive and industrial markets.
Infineon is recognized as a leader in power systems and IoT, with a workforce of approximately 58,600 employees worldwide and reported revenue of about €16.3 billion for the fiscal year ending September 30, 2023. Amkor, with its extensive history since 1968, stands as the world's largest US-headquartered OSAT service provider, offering comprehensive manufacturing services across various industries.
This article is based on a press release statement.
InvestingPro Insights
As Infineon Technologies AG (OTCQX: IFNNY) forges a significant partnership to enhance its semiconductor capabilities in Europe, a look at the company's financials through InvestingPro's lens provides a deeper understanding of its market standing. Infineon's current market capitalization stands at a robust $45.27 billion, reflecting investor confidence in its business model and future prospects.
InvestingPro data indicates that Infineon is operating with a Price-to-Earnings (P/E) ratio of 14.07, which is considered low relative to its near-term earnings growth, suggesting that the stock may be undervalued given its growth potential. This aligns with an adjusted P/E ratio for the last twelve months as of Q1 2024 of 13.39. Additionally, the company's Price-to-Earnings Growth (PEG) ratio during the same period is at 0.6, further underscoring its growth at a reasonable price valuation.
InvestingPro Tips for Infineon highlight its status as a prominent player in the Semiconductors & Semiconductor Equipment industry, with analysts predicting the company will be profitable this year. Moreover, Infineon has demonstrated a commitment to shareholder returns, having raised its dividend for three consecutive years and maintained dividend payments for 14 consecutive years. This financial discipline and performance may be particularly reassuring to investors in light of the new partnership with Amkor Technology , Inc.
For those looking to delve deeper into Infineon's financial health and future outlook, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available for Infineon, which can be accessed through the dedicated InvestingPro platform. Interested readers can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the semiconductor industry continues to evolve with strategic partnerships like that of Infineon and Amkor, staying informed with real-time data and expert analysis remains crucial for investors and industry observers alike.
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