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 right after TSMC, is pairing up with Toyota-backed car-sections provider Denso to make semiconductors in Japan and fulfill rising world wide desire in the automotive sector.

United Semiconductor Japan Co. (USJC), UMC’s Japanese subsidiary, introduced late very last month that it is setting up a manufacturing plant for energy chips that management the circulation and path of electrical existing with Denso, which is component-owned by the world’s major auto maker by sales.

“Semiconductors are turning into increasingly essential in the automotive business as mobility technologies evolve, which includes automated driving and electrification,” Denso president Koji Arima stated in the announcement. “Through this collaboration, we contribute to the steady source of power semiconductors and electrification of cars.”

“It need to be constructive information,” suggests Brady Wang, Taipei-centered associate director with sector exploration agency Counterpoint Investigation. UMC is previously positioned to do “third-generation” semiconductors, including energy-conserving forms with the right thickness for automotive use. Wang expects substantial-volume output for the Japanese auto market place. “Both of their rewards can be put into enjoy,” he states.

An insulated-gate bipolar transistor—also regarded as IGBT, which is utilized for electrical automobile motor controllers—line will be mounted at USJC’s wafer fab. It will be the 1st in Japan to make IGBTs on 300mm wafers, in accordance to the announcement. Denso will lead its method-oriented IGBT unit and system know-how, though USJC will supply its 300mm wafer producing capabilities.

Other chip makers, which include TSMC, can manufacture with IGBT technological innovation, but Japanese companies dominate considerably of the sector, notes Joanne Chiao, an analyst with Taiwan-primarily based investigation business TrendForce.

The UMC-Denso plant, in Mie Prefecture in central Japan, is scheduled to begin in the initially fifty percent of upcoming year. A spokesperson for UMC mentioned the plant will be able to produce 10,000 wafers a thirty day period by 2025.

“With our strong portfolio of highly developed specialty systems and [International Automotive Task Force] IATF 16949 accredited fabs in diversified areas, UMC is well put to provide demand from customers throughout auto applications, which include highly developed driver guidance methods, infotainment, connectivity, and powertrain,” Jason Wang, UMC co-president, claimed in the announcement. “We appear ahead to capitalizing on far more cooperation options heading forward with major gamers in the automotive place.”

Since automotive generation restarted all around the planet in late 2020, after the initially wave of the pandemic, manufacturing unit demand from customers for automotive chips has developed and remains solid because of “pent-up customer demand” for EVs and hybrids, Moody’s Traders Support reported in an emailed commentary.

The automotive semiconductor current market is estimated to increase from $35 billion in 2020 to $68 billion in 2026, Taipei-centered Market Intelligence & Consulting Institute claims.

Melissa M. Taylor

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