"Infineon Advances Localization Strategy in China, Strengthening Position as Leading Automotive Semiconductor Supplier

At the 2026 Intelligent Electric Vehicle Development Forum in Beijing, hosted by the Chebaihui Research Institute, Infineon Technologies AG highlighted the tangible progress of its China localization strategy. Cao Yanfei, Senior Vice President and Head of Automotive Greater China, shared that since announcing the “Resonating with China’s Automotive Industry” strategy in March 2025, the company has advanced steadily across three pillars: local product definition, local manufacturing, and a local ecosystem. These efforts are accelerating the transformation of China’s automotive sector toward electrification and intelligence. Infineon also reaffirmed its position as the world’s leading automotive semiconductor supplier for six consecutive years while maintaining the No.1 ranking in China’s automotive semiconductor market.

Advancing the Three Pillars of Localization

Local product definition centers on “In China, for China” innovation. Infineon collaborates closely with more than ten leading domestic “mentor” customers to co-develop system-level solutions, define product features, and deepen cooperation in key application areas. This co-creation model shortens time-to-market and ensures precise alignment with local needs.

Local manufacturing has expanded significantly since the second half of 2025. New locally produced products now span MCUs, sensors, and power devices, with some mass-production timelines brought forward. Front-end and back-end manufacturing capabilities in China continue to scale.

Local ecosystem development has strengthened collaboration across OEMs, Tier-1 suppliers, and innovators through initiatives such as automotive innovation summits and ecosystem enablement programs, accelerating the deployment of new solutions.

Key Product Milestones

In automotive MCUs, Infineon expanded its leadership in 2025 to a 36% market share. By 2027, the company plans to localize front-end and back-end production of its AURIX TC3x series using 40 nm technology in partnership with local wafer fabs and OSATs. The AURIX TC3x family addresses China’s demand for high-performance, safety- and security-compliant MCUs with strong connectivity and computing capabilities. Collaboration with AUTOSAR and cybersecurity software partners, along with six regional MCU training centers, further supports customer innovation. Notably, AURIX TC397XP became the first automotive MCU to pass China’s Level 2 automotive information security certification.

Across its MCU portfolio—from PSoC and TRAVEO II to AURIX TC4x/TC3x—Infineon’s localization plans enhance supply chain resilience and capacity assurance.

In sensors, Infineon aims to localize front-end and back-end production of 28 nm automotive radar sensors by 2027, reducing system power consumption and hardware footprint through architectural innovation.

In power semiconductors, mass production of localized 40 V MOSFETs in SSO8 packages has been moved forward from 2027 to 2026 to meet rising demand in low-voltage automotive applications.

Wuxi Back-End Manufacturing Expansion

Infineon’s Wuxi facility continues to enhance packaging capacity. Dual-channel 40–100 V MOSFETs (Dual SSO8) are already in mass production, ensuring stable supply for domestic customers. By 2026, large-scale production of DSO packaging for analog and mixed-signal products is planned.

Building a Local Innovation Ecosystem

Infineon has established joint innovation application centers with more than ten leading OEMs and Tier-1 suppliers to accelerate customized system solutions. The company is also promoting a RISC-V automotive MCU ecosystem in collaboration with industry associations and local partners to support software-defined vehicle (SDV) development.

Through initiatives such as the “Dandelion Club,” Infineon supports nearly 20 startups in emerging areas like flying cars, intelligent e-drives, by-wire chassis, and hydrogen fuel cells. Long-term sponsorship of the National College Student Intelligent Car Competition—engaging over 100,000 students from 500+ universities—culminated in the 2025 “Rising Talent, Innovation Dream” program to cultivate future industry talent.

M&A Driving System-Level Capabilities

In 2025, Infineon acquired the automotive Ethernet business of Marvell Technology, strengthening its system capabilities for software-defined vehicles. In early 2026, Infineon announced the acquisition of the non-optical analog/mixed-signal sensor business from ams-OSRAM AG, expanding its sensor portfolio.

Cao Yanfei concluded: one year after outlining the localization blueprint, Infineon is seeing concrete results across product definition, manufacturing expansion, and ecosystem collaboration. Looking ahead, the company will continue empowering local innovation at “China speed,” delivering more comprehensive localized system solutions and flexible collaboration models to support the electrification and intelligent evolution of China’s automotive industry.