Infineon sets up power module venture with China's largest car maker
Infineon has set up a joint venture with SAIC Motor in China to make power modules for electric vehicles. SAIC holds a stake of 51 percent of the JV and Infineon 49 percent.

Production at SIAPM (SAIC Infineon Automotive Power Modules (Shanghai) Co, Ltd.) will start in at Infineon’s expanded site in Wuxi later this year. The joint venture will focus on the frame-based HybridPACK silicon IGBT modules that were first introduced in 2006 and are widely used in plug-in hybrid and full electric vehicles worldwide. The robustness of the IGBTs allows easy integration into lower end models with faster time-to-market.

“Infineon has established itself as a leader in all major markets for electric vehicles by providing cutting-edge semiconductor solutions,” said said Jochen Hanebeck, member of the Management Board of Infineon responsible for operations, at the Grand Opening in Wuxi. “This includes the buoyant Chinese market which has become the largest and fastest growing market for hybrid and full electric vehicles in the world. SAIC Motor is the largest OEM in China and thus an outstanding partner to further strengthen and expand our position. Joining forces allows us to significantly expand our manufacturing capacities in order to satisfy the ever growing demand. Together we plan to generate even more business with products tailored to the needs of the Chinese electric vehicle industry.”

Production of plug-in hybrid and full electric vehicles in China is predicted to reach 2.0 million units in 2020 and 4.3 million in 2024 according to market researchers IHS Markit, accounting for 45 percent of global demand. In 2017, 794,000 electric and hybrid vehicles were produced in China, according to the China Association of Automobile Manufacturers.

“We welcome the close collaboration with Infineon, who has acquired a strong reputation in automotive power modules. This perfectly combines with our broad and in-depth system-level expertise in electric vehicles. Electric vehicles offer high convenience and unmatched driving experience for the customer while helping to save our planet. We are happy to jointly leverage our know-how with Infineon in the newly established joint venture,” said Zhixin Chen, Group President of SAIC.