Asia Tech Wire (Aug 7) -- German automotive chipmaker Infineon has completed the sale of two back-end manufacturing facilities as it announces 1,400 job cuts worldwide.

Infineon sold its two plants, located in Cavite, Philippines, and Cheonan, South Korea, to Taiwan-based semiconductor packaging company ASE for $64.22 million.

ASE will assume the operations of the two facilities along with its existing staff and further develop both sites to support multiple customers.

The two companies have also entered into long-term supply agreements, under which Infineon will continue to receive previously established services as well as new product services to support its customers and fulfill existing commitments.

As part of its cost-savings plan, Infineon will lay off 1,400 employees globally and relocating another 1,400 positions to countries with lower labor costs.