CDIL Semiconductors, one of India's oldest semiconductor firms, is teaming up with Infineon Technologies to bring localized power discrete solutions to the Indian market.
The partnership focuses on combining Infineon's wafer technology with CDIL's packaging expertise to deliver cost-optimized, India-specific products for sectors such as inverters, automotive, and renewables.
"This was one of the models that both companies thought would be an interesting way to work in India," said Prithvideep Singh, general manager at CDIL. "They supply their dies to us, and we package them with our technology."
The strategy is tailored for the distinct nature of the Indian market, which Singh describes as highly specific in its requirements.
"The local market is a very India-specific market, similar to how the China market is very China-specific," he said. For instance, in the electronics industry, while other countries have shifted to fully automated manufacturing and repair, India still relies heavily on manual repair. "Repair centers are essentially all manual. To expect a repair center to swap out an entire board - in India, that's expensive," he explained.
This understanding is critical in segments like home appliances, UPS systems, and budget vehicles, where customer preferences and pricing sensitivity demand tailored approaches.
"Sometimes it takes more than just a regular or standard part number to work in India," Singh said.
Early entrants in India
While the Infineon collaboration is relatively new, CDIL has spent years in this sector. The company is one of the few survivors of the downturn that hit India's electronics sector after the 1997 ITA-1 agreement, which drastically reduced import duties on semiconductors.
Having shifted to exports as early as the 1980s, CDIL was better positioned than most to weather the storm.
"We went from having a lot of electronics manufacturing in India to almost nothing in the span of 10 to 12 years," Singh recalled. "Fortunately, we had already started focusing on exports, which helped us survive."
CDIL is now steadily expanding its capabilities. This year, the company launched a packaging line for solar bypass diodes - essential components in every solar panel.
"These are products that have never been made in India before," Singh noted, adding that they were engineered specifically for Indian climate conditions, which demand higher heat tolerance.
Other initiatives include a new clip-bonding line for high-reliability defense-grade components, a dedicated reliability lab for automotive products, and capacity upgrades across several lines. Many of these developments took place during the pandemic - installed remotely via Zoom!
"We installed an entire new line in 2023 over Zoom," Singh said. "Equipment selection, customization, installation - it was all done online."
While the company's growth may not match the capital intensity of large players like Tata, CDIL's investments are significant for its size. "We don't have that kind of capital, but the upgrades we've made have been fairly substantial," he added.
The road ahead
Looking ahead, CDIL is positioning itself as a partner of choice for global firms exploring India's semiconductor supply chain.
"We're happy to do OSAT. We do a lot of OSAT for many companies in different countries," Singh said.
He emphasized that CDIL doesn't pursue partnerships for their own sake, but rather where it can contribute meaningfully to the product or market.
His advice to overseas players eyeing India is pragmatic: "Only do those things you genuinely understand… Find your way into the value chain where you can build a niche." He described India as "not a leading-edge market, but a value-sensitive market."
With decades of domain knowledge, expanding packaging capabilities, and a willingness to collaborate, CDIL offers a compelling model for how legacy semiconductor firms can evolve - and how global players can tap into India's rapidly growing but uniquely structured electronics market.
Article edited by Jack Wu
