Infineon Technologies and CDIL Semiconductors Partner to Tap into India’s Emerging Business Opportunities

Germany’s leading semiconductor manufacturer, Infineon Technologies, has collaborated with India’s veteran chipmaker, CDIL Semiconductors, to capitalize on the emerging business prospects in the South Asian nation. This partnership is designed to support India’s transition towards electric mobility and renewable energy, both of which heavily rely on power semiconductors.

With a population of over 1.4 billion, India aims to increase its electric vehicle (EV) penetration from the current 7-8% to 30% and boost non-fossil energy generation from 100GW to 500GW by 2030. To achieve these ambitious targets, the country requires a robust domestic ecosystem for EVs and battery storage solutions that are cost-competitive with traditional alternatives. The partnership between Infineon and CDIL aims to address these needs by providing high-quality inputs at comparable prices, thereby driving consumer adoption and supporting manufacturers in these sectors.

As part of the collaboration, Infineon will supply wafers to CDIL, which will then package and assemble them at its facility in Mohali, Punjab. The final products will cater to Indian customers in sectors such as light EVs, including electric two- and three-wheelers, as well as 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. Over time, CDIL plans to expand production using Infineon’s wafers to develop IGBTs (insulated-gate bipolar transistors), which regulate high-voltage electricity in EVs and renewable energy systems. According to CDIL General Manager Prithvideep Singh, the company has been working on silicon carbide for the last four years and has even exported the material to countries including China.

The semiconductors produced in India will utilize materials such as silicon carbide and gallium nitride, which offer greater heat resistance and provide more power density in a small space. 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, Singh noted that CDIL could scale production based on future demand.

Singh explained the significance of the partnership, saying, “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.” He also stated that the partnership is currently focused on serving domestic demand.

This is Infineon’s first manufacturing partnership in India, although the company has had a subsidiary in the country for some time and has been exploring the market actively. Infineon’s senior vice president and general manager for power systems, Richard Kuncic, believes that India is still in the early stage of an exponential curve but is expected to accelerate significantly in the next few years due to overlapping trends such as electrification and batterification.

Infineon manufactures wafers at three major facilities located in Villach (Austria), Dresden (Germany), and Kulim (Malaysia). While India aspires to become a global semiconductor hub and has announced significant investments in this space, 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 stated, “We are not starting five things just for the sake of it… we are doing one after another,” when asked about potential collaborations with other local players. This strategic approach will enable Infineon to establish a strong foothold in the Indian market and capitalize on the emerging opportunities in the semiconductor sector.