German semiconductor major Infineon as well as US chip supplier Onsemi are scouting for Indian partners to set up semiconductor assembly and test facilities in India, several people aware of the matter said. The two will join a growing roster of global firms making similar moves in the fast-growing market for OSAT facilities.
So far, the India Semiconductor Mission (ISM) has approved three OSAT (Outsourced Semiconductor Assembly and Test) units including the Tata Group's Rs 27,120 crore facility in Assam, CG Power and Industrial Solutions’ Rs 7,584 crore unit as well as Kaynes Technology India's Rs 3,307 crore project in Gujarat’s Sanand.
“Infineon is exploring the opportunity to create an OSAT presence in India,” one of the people cited above said.Last week, the German company’s Asia-Pacific arm inked a deal with Mohali-based CDIL Semiconductors to supply bare semiconductor wafers to the Indian firm, which will process and use it to assemble and package power chipsets.
“Their (Infineon’s) partnership with CDIL could also be viewed as a move towards (setting up an OSAT in India)," another person said.“They are leaders in power semiconductors but will slowly want to bring their expertise in auto and other sectors. In order to do this, they may even expand the partnerships,” the person added.In response to ET's queries, Infineon—which employs 2,500 people across four locations in the country, mainly in R&D—said India is an important market and innovation hub for the company.
"On a regular basis, we evaluate potential partnerships across the globe. However, we can’t elaborate on potential future projects at this point. Currently, Infineon has no plans for its own manufacturing activities in the country," it said.
Meanwhile, Arizona-based Onsemi, formerly ON Semiconductor Corporation, is also eyeing the India opportunity, another person told ET. The company is a global supplier of power semiconductors and sensors.
"Onsemi is very keen on an OSAT presence in India," this person said. "They see it as a way to leverage their brand name and have the Indian partner put in the money for the facility while they provide technical expertise. It becomes a win-win that way. "
In response to ET's queries, a representative for Onsemi said, "At this time, we do not have any information to share."
Infineon is one of Germany's largest semiconductor companies which reported revenue of approximately $15 billion in the 2024 fiscal year (ended Sept 30) with about 58,000 employees worldwide, as per their annual report.
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