September 5, 2025 /SemiMedia/ — Infineon Technologies is strengthening its presence in India as a long-term growth market, even as global chipmakers face uncertainty from shifting tariff regimes.

CS Chua, president and managing director of Infineon Asia Pacific, said the fluid nature of U.S. trade policies makes it difficult for semiconductor firms to adjust production strategies. “The tariff situation changes every few days, and without clarity between governments, companies can only wait and prepare on paper,” he said.

Despite policy instability, Infineon is betting on India’s vast consumer base and engineering talent. The company has partnered with Kaynes Semicon and Continental Device India Ltd (CDIL) to localize semiconductor packaging and production.

With Kaynes Semicon, Infineon will supply wafers and bare dies, while Kaynes manages packaging and sales. The two firms are preparing to launch India’s first domestically produced MEMS microphone, targeting applications such as wireless earbuds and wearable devices.

Infineon’s agreement with CDIL will bring high-performance bare die wafers into local packaging for discrete and module products, supporting power semiconductor demand in India. “This is not only about selling into India but building with India,” Chua said.

The German chipmaker is also expanding R&D operations in Bengaluru and Ahmedabad, employing 2,500 engineers in design and software, with plans to double the headcount to 5,000.

While India still lags regional peers in wafer fabrication, government incentives are accelerating ecosystem development. “It will take years to fully establish, but the momentum is there,” Chua said.

Last month, Infineon chief executive Jochen Hanebeck said revenue from AI-related chips for data centres is expected to double to around €600 million this fiscal year, driven by demand for power semiconductors.