Infineon and Amkor Sign Memorandum of Understanding To Stimulate Sustainable Action Across the Supply Chain

Rhea-AI Summary

Infineon Technologies AG and Amkor Technology, Inc. have signed a Memorandum of Understanding to promote decarbonization and sustainability across their supply chain. This partnership aims to:

• Engage with common suppliers to develop effective decarbonization strategies
• Identify areas for improvement in emissions reduction
• Support suppliers in setting science-based targets
• Provide guidance and track progress for continuous improvement

The collaboration expands on their existing Outsourced Semiconductor Assembly and Test (OSAT) relationship and aligns with both companies' sustainability goals. Infineon aims to become CO2-neutral for scope 1 and 2 by 2030, while Amkor targets net-zero emissions by 2050.

Positive

• Expansion of partnership between Infineon and Amkor to address sustainability challenges
• Joint effort to reduce Scope 3 emissions, which represent the highest share of total emissions
• Potential for improved supply chain efficiency and reduced environmental impact
• Alignment with industry-wide sustainability goals and science-based targets

Negative

• None.

• Both companies commit to actively engage with common suppliers to help them drive effective decarbonization strategies.
• The aim is to identify areas for improvement and support suppliers in setting their own science-based emissions reduction targets.
• The partnership of Infineon and Amkor is set to bring the green supplier engagement of both companies to the next level.

MUNICH & TEMPE, Ariz.--(BUSINESS WIRE)-- Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY), a leader in power systems and IoT, has signed a Memorandum of Understanding with Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, with a joint commitment to stimulate decarbonization and sustainability strategies across the supply chain.

Expanding their partnership towards sustainability is the next step in the sustainability journey of both companies. Infineon and Amkor intend to fully leverage their classical Outsourced Semiconductor Assembly and Test (OSAT) business relationship in order to effectively tackle emissions along their supply chain. In April, both companies announced to operate a dedicated packaging and test center at Amkor’s manufacturing site in Porto, Portugal.

As part of the cooperation for climate protection, Infineon and Amkor will actively engage with common suppliers to help them develop and implement effective decarbonization strategies. This will involve workshops, meetings, and the sharing of best practices and learnings related to decarbonization. The aim is to identify areas for improvement and support suppliers in setting science-based emissions reduction targets in line with the Science Based Targets initiative. Both companies are committed to providing ongoing guidance, fostering exchange, and tracking progress to drive continuous improvement across the common supply chain.

“Infineon has made excellent progress towards its aim to become CO2-neutral for scope 1 and 2 by 2030, as the company halved its emissions while doubling the revenue since 2019. Supply-chain-related Scope-3-emissions represent the highest share of total emissions at Infineon and are the hardest ones to minimize,” said Angelique van der Burg, Chief Procurement Officer at Infineon. “That makes it even more important to include them in our efforts. But no one can do it alone. We need to actively collaborate and drive innovation with our suppliers if we want to effectively reduce CO2 emissions. This is of ample importance not only for Infineon and Amkor, but also for society at large. Therefore, we are happy to join forces with Amkor on this.”

“Amkor is excited to deepen its partnership with Infineon through this strategic collaboration. Addressing Scope 3 is the most challenging part of the decarbonization journey, and we anticipate mutual benefits from this collective work in undertaking the challenge,” said Giel Rutten, Amkor’s president and chief executive officer. “This initiative is pivotal in achieving Amkor’s goal to reach net-zero emissions by 2050 by strengthening supply chain engagement through joint efforts. We look forward to collaborating with suppliers and invite them to join our endeavor to set ambitious science-based targets. Together, we are committed to driving positive environmental impact across our value chain.”

To support Infineon’s science-based target commitment and enhance the collaboration with suppliers, Infineon introduced a supplier engagement program in 2023. Since then, the company has been working with more than a hundred suppliers to set and implement science-based targets. The partnership between Amkor and Infineon provides an impetus for the strategy of both companies to make science-based targets the standard for ambitious climate strategies in the semiconductor industry.

About Infineon

Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The company has around 58,600 employees worldwide and generated revenue of about €16.3 billion in the 2023 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).

Further information is available at www.infineon.com
This press release is available online at www.infineon.com/press
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About Amkor Technology, Inc.

Amkor Technology, Inc. is the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world's leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence and wearables. Amkor's operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718115033/en/

Infineon Technologies, AG

Diana Kaaserer

Communications Manager Corporate and Innovation

+49 89 234 36571

diana.kaaserer@infineon.com

Amkor Technology, Inc.

Jennifer Jue

Vice President, Investor Relations and Finance

480-786-7594

jennifer.jue@amkor.com

Christina Parsons

Director, Marketing Communications

480-786-7823

christina.parsons@amkor.com

Social Media: @amkortechnology

Source: Amkor Technology, Inc.

FAQ

What is the purpose of the Memorandum of Understanding between Infineon and Amkor (AMKR)?

The MoU aims to stimulate decarbonization and sustainability strategies across their supply chain by engaging with common suppliers, identifying areas for improvement, and supporting the setting of science-based emissions reduction targets.

How does this partnership affect Amkor's (AMKR) sustainability goals?

This collaboration is important for Amkor's goal to reach net-zero emissions by 2050. It strengthens supply chain engagement and supports their commitment to driving positive environmental impact across the value chain.

What specific actions will Infineon and Amkor (AMKR) take to support their suppliers?

They will conduct workshops, meetings, share best practices, and provide ongoing guidance related to decarbonization. They will also help suppliers develop and implement effective strategies and set science-based emissions reduction targets.

How does this initiative relate to Amkor's (AMKR) existing business relationship with Infineon?

This sustainability partnership expands on their existing Outsourced Semiconductor Assembly and Test (OSAT) business relationship, leveraging it to effectively tackle emissions along their supply chain.