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In August 2003, Infineon Technologies AG and Taiwan’s United Epitaxy Company (UEC) announced a planned joint venture to make optical communications components in Hsinchu. Infineon was to own 56% and UEC 44%, combining Infineon’s optoelectronic-chip technology with UEC’s manufacturing and back-end capabilities. The companies described investment and production targets, but those announcements do not establish that the targets were met.

What Infineon and UEC planned

EE Times reported on August 13, 2003, that Infineon and UEC were forming a venture with a planned investment of US$12 million, staged over five years. Infineon was to hold 56% of the venture and UEC 44%; the report said the companies would license intellectual property to it. EE Times’ 2003 report

CTIMES reported on August 30, 2003, that the partners had signed an agreement on August 29 and planned to establish Lien Ying Technology in Hsinchu Science Park. Its report gave the planned investment as NT$600 million and said the company would manufacture and sell optical communications components. CTIMES / SmartAuto’s report

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The two investment figures come from separate 2003 reports and should be understood as announced plans, not evidence of money ultimately invested.

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How the partners’ roles fit together

Infineon was to contribute optoelectronic-chip technology. UEC was described as bringing back-end expertise and existing optoelectronic production capabilities, including LEDs and laser diodes. The venture was intended to assemble chips into components for high-speed fiber-optic data and transmission networks. These were industrial components, not consumer products identified for individual buyers.

Planned schedule and scale

The 2003 reports described targets rather than confirmed milestones. EE Times said the venture was expected to start in October 2003 and forecast 120 employees at full capacity. The production targets reported by EE Times and CTIMES were:

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Milestone Announced target What the reports establish
Venture start October 2003 Expected date only; achievement is not established.
Pilot production First quarter of 2004 Target only; achievement is not established.
Mass production Fourth quarter of 2004 Target only; achievement is not established.
Staffing at full capacity 120 employees EE Times forecast; not a confirmed headcount.

Sources: EE Times, August 13, 2003; CTIMES / SmartAuto, August 30, 2003.

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What the later Finisar announcement says—and does not say

In 2004, Infineon announced a planned sale of its fiber-optics business to Finisar. The assets described for transfer included Infineon’s stake in ParoLink, its joint venture with UEC. Infineon said the proposed deal was subject to regulatory and shareholder approvals and anticipated a future closing. That announcement establishes a proposed transfer, not that the sale closed. Infineon’s 2004 announcement

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The cited company announcement and 2003 reports do not establish when or whether the transaction closed, the venture’s subsequent name or ownership, or its later production history. Accordingly, neither the production targets nor the proposed stake transfer should be presented as completed outcomes.

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