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Infineon’s 2003 Optical-Chip Joint Venture in Taiwan: What Was Announced—and What Wasn’t

Infineon and UEC’s 2003 Taiwan joint venture paired optoelectronic-chip technology with optical-component manufacturing. Here are the announced terms and what later evidence does—and does not—confirm.
From TheFinanceBase Team3 min to read

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In August 2003, Infineon Technologies AG and Taiwan’s United Epitaxy Company (UEC) announced a planned optical-communications joint venture in Hsinchu. Infineon was to hold 56% and UEC 44%, combining Infineon’s optoelectronic-chip technology with UEC’s manufacturing and back-end expertise. The companies described a US$12 million, five-year investment plan, but the available announcements do not verify that the venture met its production targets or that its later proposed transfer to Finisar closed.

What Infineon and UEC announced

EE Times reported on August 13, 2003 that Infineon and UEC were forming a US$12 million venture. Infineon was expected to own 56% and UEC 44%, with funding staged over five years. The partners also planned to license intellectual property to the new company.

On August 29, the companies signed the agreement, according to CTIMES/SmartAuto’s August 30 report. That report said the company, Lien Ying Technology, would be established in Hsinchu Science Park with a planned investment of NT$600 million. The two reports use different names for the venture; a later Infineon announcement refers to Infineon’s stake in “ParoLink.” The sources available here do not establish whether these names describe the same entity at different stages or document a later name change.

Ownership, money and location

Item Announced term Qualification
Infineon ownership 56% Planned ownership reported by EE Times in 2003
UEC ownership 44% Planned ownership reported by EE Times in 2003
Investment US$12 million Planned over five years, according to EE Times
Investment NT$600 million Planned figure reported by CTIMES/SmartAuto in 2003
Base Hsinchu Science Park, Taiwan Planned location reported by CTIMES/SmartAuto
Workforce 120 employees Forecast at full capacity, not a confirmed headcount

What each partner was expected to contribute

Infineon’s role

Infineon was to provide optoelectronic-chip technology and license intellectual property to the venture. Its contribution was the chip-design and technology side of the proposed operation.

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UEC’s role

UEC was described as bringing back-end expertise and existing optoelectronic production capabilities, including experience with LEDs and laser diodes. That manufacturing base was intended to complement Infineon’s chip technology.

Planned products

The venture was intended to assemble chips into optical-communications components for high-speed fiber-optic data and transmission networks. These were industrial components for network equipment, not consumer products identified for retail buyers.

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UEC chairman Huang Kuo-hsin said: “The JV between Infineon and UEC supports the Taiwan government’s policies for industry upgrading, bringing in the world’s cutting-edge optical communications technology,” as quoted by EE Times.

Planned schedule versus verified results

The contemporary reports described targets, not completed milestones:

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  • Start of operations: expected in October 2003.
  • Pilot production: targeted for the first quarter of 2004.
  • Mass production: targeted for the fourth quarter of 2004.

Neither the EE Times nor CTIMES report establishes that those dates were achieved. They also do not provide a later production record, confirmed staffing level, or evidence of commercial output.

What the 2004 Finisar announcement says

In 2004, Infineon announced a planned sale of its fiber-optics business to Finisar. The assets described as transferring included Infineon’s stake in ParoLink, its joint venture with UEC. Infineon’s announcement said the transaction still required regulatory and shareholder approvals and anticipated a future closing.

That announcement is evidence of a proposed transfer, not proof that the sale closed. The available sources do not establish the closing date, the venture’s subsequent ownership or name, or whether its planned production continued.

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Why this matters for a personal-finance reader

This was a business-to-business semiconductor and fiber-optics project, not a publicly documented consumer investment opportunity or retail product launch. The announced percentages and dollar figures describe the partners’ planned venture terms; they do not show shareholder returns, revenue, profitability, or a way for an individual to buy the venture’s components directly.

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The most defensible takeaway is therefore historical: Infineon and UEC announced a majority-Infineon joint venture in Taiwan to develop and manufacture optical-network components, with ambitious 2003–2004 targets whose completion is not established by the cited announcements.

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