As the world increasingly gears towards sustainable energy solutions, India stands at a pivotal crossroads in its journey towards electric mobility and renewable energy. With a burgeoning population exceeding 1.4 billion, the nation is ambitious about its targets: transitioning electric vehicle (EV) penetration from 7-8% to a whopping 30% and ramping up non-fossil fuel energy generation from 100GW to 500GW by 2030. Such grand aspirations are not solely driven by governmental policies but are also influenced by rising consumer awareness regarding climate change and environmental sustainability. It’s a call to arms for industries to massively scale and innovate — a call that has caught the attention of leading semiconductor manufacturers like Infineon Technologies, which is now collaborating with CDIL Semiconductors to drive this transformation.
Forging Stronger Industry Ties
Germany’s Infineon Technologies, a titan in the semiconductor landscape, has recognized the vast potential of the Indian market. Their partnership with CDIL Semiconductors, an established player in the region with over six decades in chips manufacturing, signals a strategic move to harness Indonesia’s emerging ecosystem for both electric mobility and renewable energy. This collaboration does not merely symbolize an exchange of products but represents a shared vision and commitment to cultivating a robust framework that supports local manufacturers, thereby reducing dependency on global supply chains.
The collaboration is centered around Infineon supplying wafers to CDIL, which will handle the packaging and assembly at its facility in Mohali, Punjab. Here, the goal is crystal clear: creating high-efficiency power components that can bolster India’s electrification agenda. Initially, this undertaking will focus on manufacturing MOSFETs, critical electronic switches that regulate the flow of electricity in various devices, including electric vehicles and renewable energy solutions.
Innovating Beyond Conventional Materials
What sets this partnership apart is its commitment to utilizing advanced semiconductor materials such as silicon carbide and gallium nitride—materials designed to stand the heat and edge out traditional silicon counterparts in performance. These materials are crucial in furthering innovation, especially in high-demand sectors like electric vehicle and renewable energy solutions. CDIL has been pioneering research in silicon carbide over the past four years and has already made strides in exporting this material to global markets, including China. Nevertheless, focus remains steadfastly on satisfying the burgeoning domestic demand.
Prithvideep Singh, General Manager at CDIL, emphasized the analogy of the semiconductor wafer as akin to an engine, playing a vital role in the larger ecosystem of electric vehicles. By amalgamating their strengths with Infineon’s expertise, they are fortifying their capabilities to serve local manufacturers with quality products that drive down costs and fuel consumer adoption.
Positioning for Future Demand
While the strategic alliance may initially produce MOSFETs, the vision extends beyond. There are plans to incorporate the production of IGBTs—integral for high-voltage applications in EVs and renewable energy systems—as demand intensifies. CDIL’s current annual capacity of 600 million power semiconductor units is viewed as adequate to meet the initial needs, but the agile nature of this partnership allows for scalable production as market demands evolve.
However, it’s essential to recognize the challenges ahead. Achieving India’s ambitious targets necessitates a synchronized effort among manufacturers, suppliers, and policymakers. The semiconductor landscape faces hurdles ranging from high initial investment costs to the necessity for skilled labor and cutting-edge technology. Both Infineon and CDIL are acutely aware that a collaborative ecosystem is paramount, and they are uniting local expertise with global best practices to create a sustainable industry at home.
A Vision for Vibrant Growth
Infineon’s decision to partner with CDIL is commendable, marking its first manufacturing collaboration in India despite a longstanding subsidiary presence. The company’s executives have been actively exploring avenues in the Indian semiconductor sector and engaging with government officials to expedite mutual growth. Richard Kuncic, Infineon’s Senior Vice President for Power Systems, articulated a vision of the Indian market undergoing exponential growth fueled by overlapping trends in electrification and “batterification”—traits indicative of evolution in industries and lifestyles.
India’s ambition to evolve into a global semiconductor hub is mirrored by its recent announcements of investments and initiatives aimed at bolstering domestic manufacturing. However, it remains evident that the path is fraught with challenges, and Infineon’s approach to gradual, strategic partnerships rather than mass-market initiatives reflects a prudent understanding of the market dynamics.
In embracing a future powered by electric mobility and renewable energy, Infineon and CDIL are not just producers—they are visionaries defining the trajectory of India’s energy landscape. As this partnership progresses, it will serve as a model for future collaborations aimed at innovation, sustainability, and economic growth in the semiconductor industry.