Infineon and CDIL Partner for EV Chips and Energy Storage

Infineon Technologies Partners with CDIL Semiconductors to Expand into India

Infineon Technologies, a German technology company, has initiated a strategic move into the Indian market, formalized through a recently signed agreement. This collaboration with CDIL Semiconductors will concentrate on the development of chips specifically designed for electric vehicles and renewable energy infrastructure.

A Boost for India’s Semiconductor Industry

CDIL Semiconductors, with a history spanning over six decades, represents a key partner in this venture. The partnership highlights India’s ongoing efforts to modernize its semiconductor industry, an initiative supported by substantial financial investments. The goal is to both enhance domestic chip production and cater to the increasing global demand, as well as serve the needs of the growing internal market.

India’s Evolving Automotive and Energy Landscape

Despite being the world’s most populous nation with over 1.4 billion inhabitants, India’s adoption of electric vehicles remains relatively nascent. Currently, EVs constitute only 7% to 8% of the total transportation sector, encompassing two-, three-, and four-wheeled vehicles.

The nation aims to significantly increase this proportion to 30%, alongside the expansion of other environmentally sustainable technologies. A key target is to elevate non-fossil energy generation capacity from the current 100GW to 500GW by the year 2030.

Addressing Ecosystem Gaps

However, the necessary infrastructure to support this ambitious growth is still under development. Challenges include limited EV penetration and a lack of affordable battery storage solutions, hindering widespread consumer adoption. The partnership between Infineon and CDIL is intended to help bridge these gaps.

Infineon’s First Indian Manufacturing Venture

This marks Infineon’s inaugural manufacturing partnership within India, building upon its existing subsidiary presence in the country.

Market Acceleration Anticipated

“India is currently in the early stages of an exponential growth curve, but we anticipate significant acceleration in the coming years,” stated Richard Kuncic, Infineon’s senior vice president and general manager for power systems, in a recent interview. “The convergence of electrification and battery technology across various sectors is driving this potential.”

Production Details and Facility Location

Infineon will provide wafers to CDIL for packaging and assembly at its facility located in Mohali, Punjab. The resulting products will primarily target lighter electric vehicles, such as electric two- and three-wheelers, as well as renewable energy applications like solar inverters and energy storage systems.

Component Focus: MOSFETs and IGBTs

CDIL general manager Prithvideep Singh explained that the partnership will initially focus on the production of MOSFETs (metal-oxide-semiconductor field-effect transistors), essential electronic switches used in a wide range of devices, from smartphones to electric cars. Over time, CDIL intends to leverage Infineon’s wafers to also manufacture IGBTs (insulated-gate bipolar transistors).

IGBTs are crucial for regulating high-voltage electricity in both electric vehicles and renewable energy systems.

Current and Future Production Capacity

CDIL’s semiconductor packaging facility currently boasts an annual capacity of 600 million power semiconductor units. Both companies believe this capacity is adequate for the present, although Singh indicated that production could be scaled up to meet future demand.

Advanced Semiconductor Materials

The semiconductors produced in India will utilize advanced materials like silicon carbide and gallium nitride, offering superior heat resistance and increased power density in a compact form factor. CDIL has been actively working with silicon carbide for the past four years and has already exported this material to countries including China.

Focus on Domestic Demand

Despite this export experience, Singh clarified that the immediate focus of the Infineon partnership is to fulfill domestic demand.

A Synergistic Approach

“The wafer represents a core engine component, while the rest of the system constitutes the vehicle itself,” Singh noted. “This partnership represents a balanced combination of both elements.”

Future Expansion Plans

Infineon has no immediate plans to establish a dedicated wafer manufacturing site in India. However, the company intends to pursue further collaborations with local partners to expand its presence.

“We are adopting a phased approach, focusing on one collaboration at a time,” Kuncic stated, when questioned about potential partnerships with other Indian companies.