German semiconductor leader Infineon Technologies is set to significantly expand its operations in India, aiming to double its workforce to 5,000 employees by 2030. The company’s primary focus will be on research and development (R&D), reinforcing India’s role as a critical hub for semiconductor innovation. However, despite its expansion plans, Infineon has no immediate intentions to establish a manufacturing facility in the country.
Speaking on Tuesday, Andreas Urschitz, Chief Marketing Officer and management board member at Infineon, highlighted India’s growing importance for the company’s global strategy. “We are deeply invested in India’s talent pool and are committed to strengthening our R&D capabilities here,” he stated. Infineon currently employs 2,500 people in India, spread across four locations, primarily focusing on R&D.
Investment in Local Talent and Semiconductor Ecosystem
Urschitz emphasized India’s role as a key talent hub for the company’s global operations. “Talent is crucial to our growth, and India offers a rich resource pool that aligns with our long-term goals,” he said.
Currently, India contributes a low single-digit percentage to Infineon’s global revenue. However, the company aims to increase this to a high single-digit contribution in the near future, though Urschitz did not provide a specific timeline.
As part of its expansion, Infineon is also enhancing its engagement with India’s semiconductor ecosystem. It has partnered with CDIL Semiconductor to supply silicon wafers for manufacturing power chips. Additionally, Infineon has signed an agreement with Kaynes Semicon to further bolster local semiconductor production.
No Immediate Plans for Manufacturing, But Future Possibilities Open
While India is aggressively pushing for semiconductor manufacturing under the $10 billion India Semiconductor Mission, Infineon has ruled out immediate plans to set up a chip fabrication unit in the country. “Setting up a fab requires billions in investment and a highly developed ecosystem to be commercially viable,” Urschitz explained. However, he indicated that the company will continue to monitor India’s semiconductor sector and could reconsider its stance in the future based on market conditions and geopolitical factors.
Instead, Infineon will contribute to India’s semiconductor ambitions through strategic partnerships and local collaborations. “We want to support the Indian market by working with domestic companies to develop products tailored for local needs,” said Infineon India President and Managing Director C S Chua.
Strengthening India’s Semiconductor Workforce and Startups
Beyond direct business expansion, Infineon is investing in India’s semiconductor workforce. The company recently signed two memoranda of understanding (MoUs) in India. The first agreement, in collaboration with the Indian government, aims to provide technical mentorship and support to electronics startups. The second MoU, signed with the National Institute of Electronics & Information Technology, focuses on training and mentoring graduates in semiconductor technologies.
Urschitz also emphasized India’s push for energy independence and carbon neutrality, areas where Infineon sees opportunities for collaboration. “Energy independence is a crucial goal for India, and we are keen to support initiatives that align with sustainability,” he said.
Global Trade Concerns and Infineon’s Position
Discussing the broader global semiconductor landscape, Urschitz cautioned against rising protectionism, warning that restrictions on trade could disrupt global supply chains and fuel inflation. “History has shown that free trade is essential for prosperity and economic stability,” he noted, adding that trade policies and global market dynamics will continue to shape business strategies worldwide.
While Infineon has opted not to participate in the India Semiconductor Mission’s initial phase, the company remains committed to growing its R&D and local collaborations in the country. With India emerging as a key player in the semiconductor space, Infineon’s long-term strategy is poised to deepen its engagement with the Indian market, making it a crucial part of the company’s global expansion plans.
