Shanghai (ZXZC)- SAIC Group and Infineon Technologies AG (hereinafter referred to as Infineon) recently announced that they will set up a new JV to manufacture power modules for electric vehicles. SAIC Group and Infineon will hold a respective stake of 51% and 49% of the new JV. Named as SAIC Infineon Automotive Power Modules (Shanghai) Co, Ltd. (SAIPM), the new JV is headquartered in Shanghai, and its production base is located in Wuxi. The new JV is slated to mass produce products in the second half of 2018.

The joint venture SIAPM offers power solutions for electric vehicles in China, aiming to provide more convenient and high-quality service and experience for all customers related to new energy industrial chain in China. In addition, Infineon will continue to independently serve other markets. The joint venture will focus on frame-based HybridPACK™ modules for the Chinese market. First-generation automotive frame-based IGBT modules within the HybridPACK™ family were introduced by Infineon in 2006 and are widely used in plug-in hybrid and full electric vehicles worldwide. 

"Joining forces with SAIC Motor, the largest automaker in China, will further enhance and expand our position, and also allow us to significantly expand our manufacturing capacities in order to satisfy the ever growing demand from the market. By virtue of the products tailored to the needs of the Chinese electric vehicle industry, we plan to generate more businesses." said Jochen Hanebeck, member of the Management Board of Infineon responsible for operations, at the Grand Opening in Wuxi. "Our joint venture will make us faster to serve the electric vehicle customers in China."

Chen Zhixin, president of SAIC Group spoke highly of the cooperation and also believed that Infineon's cutting-edge power module solutions will be perfectly combined with their expertise in vehicle and system of electric vehicles.

According to the statistics from the China Association of Automobile Manufacturers (CAAM), the output of plug-in hybrid and full electric vehicles reached 7,940,000 units in China during 2017. The latest forecast of the market intelligence company IHS Markit* expects the Chinese production of plug-in hybrid and full electric vehicles to reach 2 million units in 2020 and 4.3 million in 2024, taking up about 45% of the expected global demand.