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Infineon to supply advanced power chips for Xiaomi EVs

Article Source：NIKKEI Asia | Author：NIKKEI Asia | Issuing Time：2024.05.07
TAIPEI -- Top German chipmaker Infineon has reached an agreement to supply Chinese EV maker Xiaomi with advanced power semiconductors until 2027, in a move to tap the growing electric car market in China and beyond.



Infineon said on Monday that it will provide Xiaomi's electric cars with its silicon carbide (SiC) chips and modules, as well as a wide range of key microcontroller chips. The chipmaker said the collaboration can "reinforce Infineon's position as the global market leader in automotive semiconductors."

Xiaomi, which is also the world's third-largest smartphone maker, started selling its first electric vehicle in March. It aims to shake up the EV market with its premium SU7 Max, priced at 299,900 yuan ($41,500), compared with 684,900 yuan for Tesla's Model S and 1.5 million yuan for an electric Porsche.

Zhenyu Huang, vice president of Xiaomi EV and general manager of its supply chains, said the deepening ties with Infineon will not only "help stabilize the supply of silicon carbide for Xiaomi EV, but also help us build a high-performance, safe and reliable luxury car with leading-edge features for our customers."

Global electric car sales reached nearly 14 million units last year, 95% of which were in China, Europe and the U.S., according to the International Energy Agency. China, the largest EV market, accounted for nearly 60% of new electric car registrations in 2023, IEA said. Close to 25% of EV sales were in Europe, while 10% came from the U.S.

The global race for SiC chips is heating up as the accelerating adoption of EVs and green energy drive demand. SiC is what is known as a wide-band-gap material, meaning it can withstand high voltages and temperatures. These chips are used in EV power charging applications, inverters and energy storage systems, as well as in green energy areas, such as wind turbines.

Infineon is expanding its SiC production in Kulim, Malaysia, and Villach, Austria, and has also signed deals to provide such chips to carmakers Stellantis, Hyundai Motor and Kia.

Multiple chipmakers are looking to China's market for automotive-related semiconductors. U.S. chipmaker Nvidia earlier said it would deepen its partnerships with a range of Chinese EV makers, including BYD for its advanced next-generation in-vehicle computing chip platform designed for AI and autonomous driving applications.

STMicroelectronics formed a joint venture in 2023 with Sanan Optoelectronics to manufacture SiC chips in Chongqing, Sichuan province, with plans to start production by 2025. STMicroelectronics also signed a long-term agreement with Chinese EV maker Li Auto to supply SiC chips.
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