UMC, Taiwan’s No. 2 contract chip maker immediately after TSMC, is pairing up with Toyota-backed car-areas provider Denso to make semiconductors in Japan and fulfill rising worldwide demand in the automotive sector.
United Semiconductor Japan Co. (USJC), UMC’s Japanese subsidiary, declared late previous thirty day period that it is setting up a creation plant for electrical power chips that regulate the move and course of electric latest with Denso, which is portion-owned by the world’s most significant motor vehicle maker by gross sales.
“Semiconductors are starting to be progressively crucial in the automotive business as mobility technologies evolve, such as automated driving and electrification,” Denso president Koji Arima claimed in the announcement. “Through this collaboration, we lead to the secure source of electricity semiconductors and electrification of vehicles.”
“It ought to be favourable information,” suggests Brady Wang, Taipei-based associate director with current market investigate organization Counterpoint Investigate. UMC is by now positioned to do “third-generation” semiconductors, such as vitality-conserving types with the ideal thickness for automotive use. Wang expects significant-quantity production for the Japanese vehicle market. “Both of their advantages can be set into engage in,” he says.
An insulated-gate bipolar transistor—also identified as IGBT, which is utilised for electric auto motor controllers—line will be installed at USJC’s wafer fab. It will be the 1st in Japan to produce IGBTs on 300mm wafers, according to the announcement. Denso will lead its technique-oriented IGBT system and method know-how, while USJC will provide its 300mm wafer production abilities.
Other chip makers, including TSMC, can manufacture with IGBT know-how, but Japanese businesses dominate considerably of the marketplace, notes Joanne Chiao, an analyst with Taiwan-centered exploration organization TrendForce.
The UMC-Denso plant, in Mie Prefecture in central Japan, is scheduled to commence in the first 50 % of future calendar year. A spokesperson for UMC said the plant will be equipped to make 10,000 wafers a thirty day period by 2025.
“With our robust portfolio of advanced specialty technologies and [International Automotive Task Force] IATF 16949 qualified fabs in diversified destinations, UMC is properly placed to provide demand from customers across auto purposes, which includes sophisticated driver help systems, infotainment, connectivity, and powertrain,” Jason Wang, UMC co-president, claimed in the announcement. “We appear ahead to capitalizing on extra cooperation alternatives likely ahead with major gamers in the automotive place.”
Considering the fact that automotive production restarted all-around the environment in late 2020, following the initial wave of the pandemic, factory need for automotive chips has developed and remains strong mainly because of “pent-up client demand” for EVs and hybrids, Moody’s Buyers Provider mentioned in an emailed commentary.
The automotive semiconductor industry is believed to mature from $35 billion in 2020 to $68 billion in 2026, Taipei-primarily based Industry Intelligence & Consulting Institute says.