Infineon, the Munich-based semiconductor and microelectronics company, has signed a memorandum of understanding (MoU) with Alibaba Cloud Computing to promote Chinese IoT.

The MoU focuses on increasing uses and speeding adoption of IoT for smart life and smart industry applications in China. Infineon will collaborate with Alibaba Cloud to expand and promote AliOS Things, the Alibaba Cloud IoT operating system.

The two companies will also work together on IoT security solutions, particularly low-cost IoT security for SMEs.

In a recent survey, 58% of respondents said that IoT was a major concern for their company, and 45% identified cost as the greatest barrier to further investment in IoT security.

In addition to working on low-cost, high-impact IoT and IoT security solutions, Infineon and Alibaba Cloud intend to explore eCommerce collaboration opportunities.

Wei Ku, vice president of Alibaba Group and general manager of Alibaba Cloud IoT noted that partnerships are invaluable to the progress of IoT solutions. “This partnership combines Alibaba Cloud’s capabilities in operating systems with Infineon’s semiconductor technology solutions,” he said. “We believe that this will effectively promote the deployment of IoT in smart industries.”

This sentiment was echoed by Infineon’s vice president of power management and multimarket, David Poon, who said that the partnership will support the development and promotion of enterprise IoT throughout the country.

“Sustainable growth in mainland China is one of Infineon’s most important development strategies, and is also our long-term goal in the Chinese market,” he said. “We are very pleased to work with leading companies like Alibaba Cloud, and to join in creating an IoT service platform that meets the needs of the local market, helps companies achieve digitalization, and provides a driving engine for innovation and the development of smart cities in China.”

Alibaba Cloud also signed an MoU with Siemens this week, for the promotion of industrial IoT solutions. The Alibaba-Siemens partnership is focused on bringing Industry 4.0 solutions to Chinese manufacturers, with Alibaba’s use of the Siemens MindSphere IoT connectivity and analytics platform.

Earlier this week, Infineon increased its full-year outlook based on strong results, particularly in the automotive industry, where the company creates products for hybrid and electric vehicles, safety monitoring, chassis design and more.