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


UMC, Taiwan’s No. 2 contract chip maker after TSMC, is pairing up with Toyota-backed auto-sections supplier Denso to make semiconductors in Japan and meet rising world wide demand from customers in the automotive sector.

United Semiconductor Japan Co. (USJC), UMC’s Japanese subsidiary, introduced late final month that it is creating a production plant for energy chips that management the move and path of electrical existing with Denso, which is aspect-owned by the world’s most significant auto maker by gross sales.

“Semiconductors are turning into progressively important in the automotive marketplace as mobility systems evolve, like automated driving and electrification,” Denso president Koji Arima claimed in the announcement. “Through this collaboration, we contribute to the steady source of electrical power semiconductors and electrification of vehicles.”

“It should really be good news,” suggests Brady Wang, Taipei-dependent associate director with industry investigation agency Counterpoint Research. UMC is now positioned to do “third-generation” semiconductors, including electrical power-conserving types with the correct thickness for automotive use. Wang expects large-volume production for the Japanese vehicle current market. “Both of their positive aspects can be place into perform,” he says.

An insulated-gate bipolar transistor—also regarded as IGBT, which is used for electric powered vehicle motor controllers—line will be set up at USJC’s wafer fab. It will be the very first in Japan to create IGBTs on 300mm wafers, according to the announcement. Denso will lead its method-oriented IGBT machine and procedure know-how, when USJC will provide its 300mm wafer manufacturing capabilities.

Other chip makers, which includes TSMC, can manufacture with IGBT know-how, but Japanese providers dominate significantly of the market, notes Joanne Chiao, an analyst with Taiwan-based mostly investigation company TrendForce.

The UMC-Denso plant, in Mie Prefecture in central Japan, is scheduled to start off in the 1st 50 percent of next year. A spokesperson for UMC mentioned the plant will be equipped to generate 10,000 wafers a month by 2025.

“With our robust portfolio of state-of-the-art specialty systems and [International Automotive Task Force] IATF 16949 certified fabs in diversified spots, UMC is nicely positioned to provide desire throughout car purposes, which includes sophisticated driver assistance techniques, infotainment, connectivity, and powertrain,” Jason Wang, UMC co-president, explained in the announcement. “We glance forward to capitalizing on more cooperation opportunities heading forward with top players in the automotive place.”

Due to the fact automotive output restarted around the globe in late 2020, immediately after the very first wave of the pandemic, factory need for automotive chips has developed and remains solid for the reason that of “pent-up shopper demand” for EVs and hybrids, Moody’s Investors Assistance stated in an emailed commentary.

The automotive semiconductor market is estimated to grow from $35 billion in 2020 to $68 billion in 2026, Taipei-dependent Current market Intelligence & Consulting Institute says.



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