Infineon, Onsemi explore India partnerships for semiconductor facilities
What's the story
German semiconductor giant Infineon and US-based chip supplier Onsemi are reportedly eyeing partnerships with Indian firms to set up semiconductor assembly and testing (OSAT) facilities in the country.
The move comes as India continues to establish itself in the global semiconductor manufacturing industry.
According to The Economic Times, Infineon, a leading power semiconductor firm, is actively exploring OSAT opportunities in India.
Partnership details
Infineon partners with CDIL Semiconductors
Infineon recently signed an agreement with Mohali-based CDIL Semiconductors to supply bare semiconductor wafers.
The deal states that CDIL will process and package these wafers into power chipsets.
This partnership is seen as a potential precursor to Infineon's expansion of its OSAT footprint in India.
A source told The Economic Times, "Their (Infineon's) partnership with CDIL could also be viewed as a move toward setting up an OSAT in India."
Company stance
Infineon acknowledges India's significance
Responding to queries from The Economic Times, Infineon acknowledged India as an important market and innovation hub.
However, the company said that there are no confirmed plans for manufacturing activities in the country, as of now.
An Infineon representative said, "On a regular basis, we evaluate potential partnerships across the globe. However, we can't elaborate on potential future projects at this point."
Expansion strategy
ON Semiconductor's plans for India
Onsemi is also looking to expand its footprint in India, with an OSAT facility being a major focus.
The Arizona-based company sees a partnership with an Indian firm as an opportunity to offer technical expertise while the latter funds the facility.
A source told The Economic Times, "Onsemi is very keen on an OSAT presence in India."
However, when contacted by The Economic Times, Onsemi said they do not have any information to share at this time.
ISM progress
India Semiconductor Mission has approved 3 OSAT facilities
The interest from Infineon and Onsemi comes as India strives to bolster its semiconductor ecosystem.
The India Semiconductor Mission (ISM) has already greenlit three OSAT facilities: Tata Group's ₹27,120 crore unit in Assam, CG Power and Industrial Solutions's ₹7,584 crore facility, and Kaynes Technology India's ₹3,307 crore project in Gujarat's Sanand.
Infineon posted $15 billion in revenue for the 2024 fiscal year and has around 58,000 employees globally.