Infineon, SAIC Motor of China establish power module JV

March 02, 2018 // By Christoph Hammerschmidt
In order to better serve the dynamically growing market for electric vehicles in China, Infineon Technologies has established a joint venture with SAIC Motor Corporation Limited for the production of power modules. SAIC Motor, the largest car manufacturer in the Chinese A-shares market, holds 51 percent of the joint venture Infineon 49 percent.

The joint venture called SIAPM (SAIC Infineon Automotive Power Modules (Shanghai) Co, Ltd.) is headquartered in Shanghai. Production will be carried out at Infineon's expanded site in Wuxi. Volume production is scheduled to start up in the second half of 2018.

"Infineon has established itself as a leading manufacturer of technologically advanced chip solutions in all major electric vehicle markets. This is particularly true of the promising Chinese market - the world's largest and fastest growing hybrid and electric vehicle market," said Jochen Hanebeck, Infineon's Chief Operating Officer. "SAIC Motor is a very good partner to further strengthen and expand our position as the largest car manufacturer in China. The JV will allow Infineon to significantly expand its manufacturing capacity and manufacture products that are tailored to the needs of the Chinese electric vehicle industry. 

The joint venture provides power semiconductor solutions for electric vehicles in China. The aim is to supply all customers who produce in China. Customers outside China will continue to be served directly by Infineon. The joint venture will focus on frame-based HybridPACK modules. Infineon introduced the first generation of this frame-based automotive IGBT module within the HybridPACK family in 2006, and is now used in many plug-in hybrids and all-electric vehicles worldwide. They can be easily integrated into cost-optimized systems and enable very fast development cycles.

Market researchers at IHS Markit expect China's annual production of plug-in hybrids and full-electric vehicles to increase to 2 million units by 2020 and to 4.3 million by 2024 - Infineon estimates that around 45 percent of the forecast global demand at that time. According to data from the Chinese Association of Automobile Manufacturers, production in China in 2017 was 794,000 units.

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