Germany based Infineon eyes entry into India's power semiconductor market

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Germany based Infineon eyes entry into India's power semiconductor market

Germany based Infineon eyes entry into India's power semiconductor market

Industry News
Sep 06,24

India’s IT Minister Ashwini Vaishnaw announced via a post on X (formerly Twitter) that the government has initiated discussions with Infineon, Germany's largest chipmaker, regarding the development of power semiconductors in India. With the country's growing power generation, transmission, and storage needs, power semiconductors are crucial for decarbonizing sectors such as automotive, industrial, and data centers.

Infineon, known for its expertise in the automotive and industrial power semiconductor space, produces chips that are vital for running vehicle systems, connecting sensors and computers within automobiles. The company aims to strengthen its position in the power semiconductor market, with automotive vehicles accounting for over 50% of its revenue.

Power semiconductors, often used as switches in power electronics, are becoming increasingly important as electric vehicles (EVs) rise in popularity. Silicon Carbide (SiC), a compound semiconductor that offers advantages over traditional silicon, is one of Infineon's specialties.

Despite facing a slowdown in EV demand in Europe due to weak economic growth and inadequate charging infrastructure, Infineon continues to expand globally. For the fiscal year ending September 30, 2023, Infineon reported revenues of approximately €16.3 billion, with 58,600 employees worldwide. The company also operates a research and development center in Bengaluru, India.

In August, Infineon announced plans to relocate 1,400 jobs to countries with lower labor costs and cut another 1,400 jobs globally. The company's Q3 revenue fell 9.5% year-on-year to €3.7 billion, missing analyst expectations. As India advances its IndiaAI mission, the development of domestic semiconductor production becomes increasingly critical to meet the demand for AI hardware.

(Communications Today)