Taiwan’s No. 2 Chip Maker Teams Up With Car Parts Giant To Make Semiconductors In Japan

UMC, Taiwan’s No. 2 deal chip maker soon after TSMC, is pairing up with Toyota-backed vehicle-elements provider Denso to make semiconductors in Japan and fulfill expanding world demand in the automotive sector.

United Semiconductor Japan Co. (USJC), UMC’s Japanese subsidiary, declared late final month that it is developing a manufacturing plant for power chips that manage the circulation and course of electrical recent with Denso, which is aspect-owned by the world’s most significant auto maker by profits.

“Semiconductors are getting to be more and more essential in the automotive sector as mobility systems evolve, such as automatic driving and electrification,” Denso president Koji Arima stated in the announcement. “Through this collaboration, we add to the steady provide of energy semiconductors and electrification of vehicles.”

“It must be good information,” claims Brady Wang, Taipei-primarily based affiliate director with current market exploration organization Counterpoint Analysis. UMC is now positioned to do “third-generation” semiconductors, which include strength-saving varieties with the proper thickness for automotive use. Wang expects high-volume generation for the Japanese auto market. “Both of their rewards can be set into perform,” he says.

An insulated-gate bipolar transistor—also acknowledged as IGBT, which is utilised for electrical auto motor controllers—line will be put in at USJC’s wafer fab. It will be the very first in Japan to generate IGBTs on 300mm wafers, in accordance to the announcement. Denso will add its program-oriented IGBT device and course of action know-how, while USJC will deliver its 300mm wafer manufacturing abilities.

Other chip makers, together with TSMC, can manufacture with IGBT technological know-how, but Japanese organizations dominate considerably of the market, notes Joanne Chiao, an analyst with Taiwan-based mostly study agency TrendForce.

The UMC-Denso plant, in Mie Prefecture in central Japan, is scheduled to start off in the 1st 50 % of following calendar year. A spokesperson for UMC reported the plant will be able to deliver 10,000 wafers a month by 2025.

“With our sturdy portfolio of highly developed specialty technologies and [International Automotive Task Force] IATF 16949 accredited fabs in diversified places, UMC is well placed to serve need throughout auto programs, which include innovative driver assistance devices, infotainment, connectivity, and powertrain,” Jason Wang, UMC co-president, claimed in the announcement. “We glance ahead to capitalizing on far more cooperation opportunities heading ahead with major players in the automotive area.”

Due to the fact automotive production restarted about the globe in late 2020, right after the first wave of the pandemic, factory demand for automotive chips has grown and continues to be powerful for the reason that of “pent-up buyer demand” for EVs and hybrids, Moody’s Investors Support said in an emailed commentary.

The automotive semiconductor sector is approximated to increase from $35 billion in 2020 to $68 billion in 2026, Taipei-based Marketplace Intelligence & Consulting Institute claims.