Government has discussed the development of power semiconductors with Infineon, Germany's largest chipmaker, Electronics and IT Minister Ashwini Vaishnaw informed through a social media post on the platform X, on September 3.
"Discussed power semiconductor development with Infineon team. Good potential for Silicon Carbide chips in EV, Industrial and Telecom space," Ashwini Vaishnaw said. SiC (Silicon Carbide) is a type of compound semiconductor made of silicon and carbide, and offers an edge over silicon semiconductors.
Infineon had in August said that it is looking to relocate 1,400 jobs to countries with lower labour costs, and cut another 1,400 jobs worldwide.
A power semiconductor device is used as a switch in power electronics. Infineon is in the semiconductor segment that makes chips for automotive and industrial power sectors, and has specialised in making chips used in cars. The company has been strengthening its manufacturing base for power semiconductors.
Power semiconductors help in the decarbonization of automotive, industrial and data center fields, and given India's rising power generation, transmission and storage requirements, this is being seen as a critical component in the supply chain.
Infineon’s chips help run automotive systems that connect sensors and computers within a vehicle. Automotive chips account for over 50% of Infineon's revenue, and the company has said that is confident that it will stay strong.
Major semiconductor players in Europe are facing a pullback in EV demand — partly due to weaker-than-expected economic growth and a lack of charging stations. Infineon Chief Executive Officer Jochen Hanebeck had during the earnings call in August said that a recovery from in electric vehicle demand is 'not yet in sight'.
For the 2023 fiscal year ending September 30, Infineon clocked a revenue of approximately Euro 16.3 billion, with 58,600 employees worldwide. The company has a R&D site and application center in Bengaluru.
Infineon's revenue fell by 9.5% on year to Euro 3.7 billion ($4 billion) in its third quarter sales, short of analyst expectations. Sales from its biggest business - automotive - came in at Euro 2.11 billion in the third quarter, marginally lower compared to a year ago. Given China's global dominance in the EV market, Asia is being seen as a critical geography for Infineon to stage a revival in its turnover.
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