Tesla Motors taps Infineon for power chips

Tesla Motors Inc. is sourcing power chips from Infineon Technologies AG, according to a report by Bloomberg. The report quotes Infineon CEO Peter Bauer.

Bauer revealed the design win when speaking to the International Club of Frankfurt Business Journalists on Wednesday (Nov. 24) evening, Bloomberg said.

Infineon power ICs are used in the Tesla Roadster and are being tested for use in the Model-S, which is under development and due to begin production in 2012, the article said.

Infineon is in the process of selling its wireless business group to Intel Corp. for $1.4 billion in cash leaving Infineon to focus on automotive, industrial and energy related applications for semiconductors. The deal is expected to close in the first quarter of 2011.

Bauer told the meeting that the wireless chip business is highly volatile and closely tied to the fluctuating US dollar. The automotive business is more stable and design wins achieved in the near future will generate sales for Infineon in 2015 and beyond, the report cited Bauer as saying.