Infineon Technologies, Germany's leading semiconductor manufacturer, has formed a strategic partnership with India's CDIL Semiconductors to tap into emerging business opportunities in the South Asian nation. The collaboration aims to support India's ambitious plans to expand its electric vehicle (EV) penetration and boost non-fossil energy generation, both of which rely heavily on power semiconductors.

India, with a population of over 1.4 billion, is seeking to increase its EV penetration from 7-8% to 30% and boost non-fossil energy generation from 100GW to 500GW by 2030. Achieving these targets requires a robust domestic ecosystem for EVs and battery storage solutions that are cost-competitive with traditional alternatives to drive consumer adoption. Manufacturers in these sectors also need high-quality inputs at comparable prices to keep their costs low. The Infineon-CDIL partnership aims to address these challenges.

As part of the collaboration, Infineon will supply wafers to CDIL, which will package and assemble them at its Mohali facility in Punjab. The final products will serve Indian customers in sectors such as light EVs, including electric two- and three-wheelers, and renewable energy products like solar inverters and energy storage systems. Initially, the partnership will focus on producing MOSFETs (metal-oxide-semiconductor field-effect transistors), which function as electronic switches to control electricity flow in devices ranging from smartphones to electric cars.

CDIL plans to expand production by using Infineon's wafers to develop IGBTs (insulated-gate bipolar transistors) over time. These components regulate high-voltage electricity in EVs and renewable energy systems. CDIL's semiconductor packaging facility currently has an annual capacity of 600 million power semiconductor units, which both companies believe is sufficient for now. However, CDIL is prepared to scale production based on future demand.

The semiconductors produced in India will use materials such as silicon carbide and gallium nitride, which offer greater heat resistance and provide more power density in a small space. CDIL has been working specifically on silicon carbide for the last four years and has even exported the material to countries including China. Notably, the Infineon partnership is currently focused on serving domestic demand.

CDIL General Manager Prithvideep Singh emphasized the significance of the partnership, stating, "The wafer is like an engine. It is one critical component. And then, of course, you have the rest of the car, so it's a good mix of both." This collaboration marks Infineon's first manufacturing partnership in India, although the company has had a subsidiary in the country for some time and has been actively exploring the market for the last few months.

Infineon's senior vice president and general manager for power systems, Richard Kuncic, expressed optimism about India's growth potential, stating, "We believe that India is still in the more early stage of an exponential curve, but we do believe that this market will accelerate significantly in the next few years because a lot of trends start to overlap… you have the electrification and batterification of everything."

While India aspires to become a global semiconductor hub, Infineon has no immediate plans to establish a wafer manufacturing site in India. Instead, the company is looking to form additional partnerships in the Indian market to grow its presence. Kuncic noted, "We are not starting five things just for the sake of it… we are doing one after another." This strategic approach is likely to help Infineon tap into India's emerging opportunities in electric mobility and renewable energy.

The partnership between Infineon and CDIL is a significant development in India's quest to become a major player in the global semiconductor industry. As the country continues to invest heavily in this space, collaborations like this one will be crucial in driving growth and innovation in the sector.