Have you already checked component reference: TalendHelpCenter:tFileInputExcel?
In your job there is actually (except this checked option) no difference. The component reads the file not completely at once instead it traverse through the Excel (XML based file) and returns row by row without keeping them in the memory.
There is an alternative to the build-in Excel components:
tFileExcelWorkbookOpen + tFileExcelSheetInput in Talend Exchange.
The tFileExcelWorkbookOpen component provides an option memory saving mode.
This option works different from Talends methods. It keeps a fix amount of rows and release the rest of them. This is done by a special kind workbook made by the Apache developers.
By the way, the tFileExcelSheetInput is much more powerful as the Talend build-in components.
Visit the site:
and search for fileexcel -> you will see the whole bunch of components dealing with Excel -> all are wide spread used in various projects (some of them have enabled projects for me).