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Amkor, Infineon Supply Chains opt OSAT for Sustainability

Amkor Technology, a top supplier of semiconductor packaging and test services, and Infineon Technologies have inked a Memorandum of Understanding in which the parties agree to promote decarbonization and sustainability initiatives across the supply chains.

Amkor, Infineon Supply Chains opt OSAT for Sustainability the volt post
Farshad Haghighi, Executive Vice President, Chief Sales Officer of Amkor and Angelique van der Burg, Chief Procurement Officer of Infineon

The next phase in both businesses’ sustainability journeys is to deepen their relationship in the direction of sustainability.

Amkor and Infineon plan to take full use of their traditional Outsourced Semiconductor Assembly and Test (OSAT) business partnership to address emissions throughout their supply chain. Both businesses said in April that they will run a separate packaging and testing facility inside Amkor’s Porto, Portugal, production facility.

Infineon and Amkor will actively collaborate with common suppliers as part of their climate protection partnership to assist in the creation and execution of efficient decarbonization plans. Workshops, gatherings, and the exchange of decarbonization-related best practices and lessons learned will all be part of this.

The objective is to pinpoint areas in need of development and assist suppliers in establishing science-based emissions reduction goals in accordance with the Science Based Targets program. In order to promote continual development throughout the shared supply chain, both businesses are dedicated to offering continuing direction, encouraging communication, and monitoring progress.

Vital objectives of Amkor and Infineon sustainability initiatives across the supply chain includes:

• The goal is to identify areas for improvement and support suppliers in setting their own science-based emissions reduction targets.

• Both firms pledge to aggressively engage with common suppliers to help them develop effective decarbonization programs.

• Infineon and Amkor’s collaboration is expected to advance both businesses’ involvement with green suppliers.

“Infineon has made excellent progress towards its aim to become CO 2-neutral for scope 1 and 2 by 2030, as the company more than 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 CO 2 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, added Angelique.

“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, President and Chief Executive Officer of Amkor. “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.”

In 2023, Infineon launched a supplier engagement initiative to strengthen supplier cooperation and support the company’s science-based target commitment. Since then, the company has established and implemented science-based objectives in collaboration with over a hundred suppliers. The alliance between Infineon and Amkor gives both firms’ ambitious climate policies in the semiconductor sector more motivation to adopt science-based objectives.

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