UMC, Taiwan’s No. 2 contract chip maker after TSMC, is pairing up with Toyota-backed car-parts supplier Denso to make semiconductors in Japan and meet growing global demand in the automotive sector.
United Semiconductor Japan Co. (USJC), UMC’s Japanese subsidiary, announced late last month that it is building a production plant for power chips that control the flow and direction of electric current with Denso, which is part-owned by the world’s largest car maker by sales.
“Semiconductors are becoming increasingly important in the automotive industry as mobility technologies evolve, including automated driving and electrification,” Denso president Koji Arima said in the announcement. “Through this collaboration, we contribute to the stable supply of power semiconductors and electrification of automobiles.”
“It should be positive news,” says Brady Wang, Taipei-based associate director with market research firm Counterpoint Research. UMC is already positioned to do “third-generation” semiconductors, including energy-saving