In a groundbreaking move, Infineon Technologies, the behemoth of semiconductor manufacturing in Germany, has joined forces with CDIL Semiconductors, a venerable player in India’s chip-making landscape. This partnership is not merely a corporate alliance; it’s a strategic step towards addressing the multifaceted challenges of electric mobility and renewable energy within one of the most populous nations on the planet. With over 1.4 billion residents, India is poised to enhance its electric vehicle (EV) market penetration from a modest 7-8% to a staggering 30% by the end of the decade. Additionally, the country’s ambitious target of ramping up non-fossil energy capacity from 100GW to a remarkable 500GW by 2030 is a testament to its determination to innovate and empower.
This collaboration is a golden ticket for both entities to cultivate a thriving domestic ecosystem that can support the burgeoning demands of EVs and battery storage solutions. However, it’s not merely about increasing numbers; the focus is on creating a cost-competitive environment that can sway consumer preferences away from traditional fossil fuel options. To achieve this, downstream manufacturers expect nothing less than high-quality semiconductor inputs at reasonable costs, and that’s where Infineon and CDIL are stepping in to make a difference.
The Empowering Role of Wafers
At the core of the Infineon-CDIL partnership lies a highly strategic supply chain decision: the provision of semiconductor wafers. Infineon is set to supply these critical components, which CDIL will then package and assemble at their facility located in Mohali, Punjab. This operational synergy will yield products that cater specifically to the Indian market, focusing on sectors like light electric vehicles—which include the increasingly popular electric two-wheelers and three-wheelers—and essential renewable energy solutions such as solar inverters and energy storage systems.
In an insightful interview with TechCrunch, Prithvideep Singh, General Manager at CDIL, unveiled that the initial output from this collaboration will focus on the mass production of MOSFETs (Metal-Oxide-Semiconductor Field-Effect Transistors). These components serve as essential electronic switches, controlling the flow of electricity in a vast array of devices, from smartphones to electric vehicles. The long-term vision is clear; CDIL aims to leverage Infineon’s wafers to engineer IGBTs (Insulated-Gate Bipolar Transistors), which play a pivotal role in managing high-voltage electricity in EVs and renewable energy systems.
Outperforming Traditional Semiconductors
What’s particularly exciting about this partnership is that CDIL intends to transcend the conventional limitations of traditional silicon semiconductors. Instead, the focus will be on more advanced materials such as silicon carbide (SiC) and gallium nitride (GaN). These materials exhibit superior heat resistance and higher power density, enabling more efficient performance in compact spaces. CDIL has been diligently researching silicon carbide for the past four years, exporting the material to countries like China, yet its recent partnership with Infineon shows a commitment to prioritize the growing domestic market in India.
Singh articulated the significance of wafers in the broader context of EV development: “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 analogy encapsulates what is fundamentally an intricate and multi-faceted relationship between semiconductor production and the evolving automotive landscape.
Infineon’s Vision for India
This partnership marks Infineon’s inaugural manufacturing venture within India, showcasing their keen interest in exploring local markets. Historically, the company has built a robust presence through a subsidiary, having actively engaged with government officials to identify opportunities within the realm of power semiconductors. Richard Kuncic, Infineon’s senior vice president and general manager for power systems, expressed optimism regarding India’s potential: “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.”
Although Infineon operates cutting-edge wafer manufacturing facilities in Austria, Germany, and Malaysia, there are currently no immediate plans to establish a similar site in India. Instead, the company is strategically focused on forging further partnerships to enhance its footprint in this burgeoning market. Kuncic emphasized the methodical nature of Infineon’s expansion strategy: “We are not starting five things just for the sake of it; we are doing one after another.”
The Road Ahead for Semiconductor Innovation
As India embarks on its ambitious journey toward becoming a global semiconductor hub, investments in this burgeoning industry tally in the billions. The collaboration between Infineon and CDIL not only serves to meet immediate domestic demands but also underlines a shared commitment to innovation—an essential element in facilitating India’s transformative journey towards a sustainable energy future. With a roadmap that focuses on high-quality, cutting-edge semiconductor technologies, both companies are positioned to lead a significant technological evolution in one of the world’s most dynamic markets.