HPSD and Sagar Semiconductors team up to boost India’s semiconductor sector

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Hitachi Power Semiconductor Device, (HPSD) and Sagar Semiconductors (Sagar Semi) have built and advanced a collaboration with the signing of a Memorandum of Understanding (MoU) to conduct joint-marketing for high power devices such as IGBTs and SiC, New Product Development (NPD), and technology transfer of high voltage diode. This signing underscores a pivotal move towards fortifying India’s semiconductor landscape and contributing significantly to the nation’s ‘Make in India’ initiative.

The MoU, inked at Sagar Semiconductors’ headquarters in Hyderabad, marks a new era of partnership between two companies. Present at the signing ceremony were Mr. Kedar Reddy, Managing Director of Sagar Semiconductors, and Mr. Hirotaka Wakamatsu, Head of Business Development for Hitachi Power Semiconductor Devices.

The collaboration encompasses three key domains:

1. Joint Marketing Efforts: HPSD and Sagar Semi are set to advance their joint efforts in marketing high voltage high power SiC and IGBT products. This will synergize with Sagar Semiconductor’s existing portfolio, augmenting its offerings in MOSFETs and IGBTs.

2. New Product Development (NPD): The partnership is poised to pioneer solutions tailored for burgeoning technologies in India, focusing on sectors like White Goods, Energy Storage Solutions (ESS), and railways.

3. Technical Transfer and Training: Sagar Semiconductors is aiming to set up a manufacturing facility which will produce high voltage semiconductors such as high voltage diodes for the automotive industry. Here, HPSD has agreed to consider a technical transfer related to the end-to-end manufacturing of these high voltage devices. HPSD will support Sagar semiconductor’s study for the project plan, including transferring related technologies and training for Sagar Semiconductors’ team in India and Japan.

The proposed factory will include both the fabrication as well as the packaging of these devices. This would be one of India’s first end-to-end (both front end and back end) integrated semiconductor factories. This factory will produce around 100 Mn units per year. Furthermore, HPSD will consider relocating some of its HPSD facilities to India in the future. Additionally, HPSD has committed to facilitating the setup of this factory and providing comprehensive training to local personnel, both in Japan and India, subject to further deliberation by both parties.

This collaboration is envisaged to bolster India’s semiconductor and power electronics ecosystem by fostering indigenous manufacturing capabilities, skill development, and advancing technological prowess through new product development.

Mr. Kedar Reddy, MD, Sagar Semiconductors expressed his enthusiasm, stating, “This collaboration signifies a pivotal moment for the Indian semiconductor landscape. By localizing operations and nurturing NPD capabilities, we are taking tangible steps towards self-sufficiency, poised to make a transformative impact on the semiconductor ecosystem.”

In alignment with the objectives outlined in the India Semiconductor Mission (ISM), both entities will work together to foster a conducive environment for semiconductor innovation and manufacturing, propel India towards global eminence in the semiconductor domain.

Mr. . Hirotaka Wakamatsu, Head of Business Development for Hitachi Power Semiconductor Devices expressed his belief in the Indian market, stating, “We are very bullish on the Indian semiconductor and power electronics market. We are happy to partner with Sagar Semiconductors to explore various initiatives for the Indian market. We believe our decades of experience combined with their local knowledge will be a winning combination. “

In the coming weeks both teams will work towards translating this non-binding MOU into specific contractual terms across the three key areas of the agreement.