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Program Forges Tighter Bonds Between Automakers and Taiwan Chipmakers

July 18, 2022
SEMI Taiwan, Foxconn Technology, and UMC jointly released the SEMI Auto IC Master program, which is designed to provide complete automotive chip solutions through close partnerships with Taiwan‘s automotive semiconductor supply chain.

Automotive semiconductors are expected to record a compound annual growth rate (CAGR) of 16.5% through 2026, according to market research firm Gartner. In addition, says Gartner, electronic component spending for electric vehicles, self-driving cars, advanced driver-assistance systems (ADAS), and other in-vehicle products is expected to increase 50% by 2030.

To focus on the market potential of semiconductor applications in the automotive sector, Foxconn Technology, SEMI Taiwan, and UMC have jointly released the SEMI Auto IC Master program. It’s designed to provide complete automotive chip solutions through close partnerships with Taiwan‘s automotive semiconductor supply chain.

What Exactly is SEMI Auto IC Master?

This guide to automotive semiconductor and component providers in Taiwan was developed to enable closer collaboration among carmakers, automobile Tier 1 suppliers, integrated device manufacturers (IDMs), and fabless companies. It aims to facilitate technical exchanges between major automakers and Taiwan’s supply chain and discuss the R&D needed to support next-generation technologies.

SEMI Auto IC Master includes companies' product information and provides data-driven insights on the functionality, reliability, and safety of auto chips in a platform designed to tighten the partnership between the IC industry and automakers.

“The publication of the SEMI Auto IC Master is merely the beginning and will evolve to continue to meet the needs of the automotive industry,” said Young Liu, Chairman of Hon Hai Technology Group. “The guide offers key details about Taiwan’s semiconductor ecosystem to help fuel the rapid growth of the new-energy vehicle market, positioning Taiwan as a key player in the global automotive chip market.”

UMC honorary vice chairman John Hsuan said, “Taiwan’s chip-manufacturing efficiency holds the key to enabling greater efficiencies between automakers and the semiconductor supply chain. Electric-vehicle market growth is a key driver of semiconductor demand in the automotive sector, with the number of chips in an EV expected to exceed 3,000 in the future. I encourage additional Taiwanese semiconductor companies to work more closely with the automotive sector to help drive the expansion of this important market.”

Better Equipped for Supply-Chain Issues

The guide also is intended to help automakers better adapt production capacity to semiconductor supply-chain disruptions.

“The ongoing chip shortage underscores the need for SEMI member companies and the automotive supply chain to collaborate more closely and to help maintain adequate chip supplies for automakers during supply-chain disruptions,” said Terry Tsao, Global Chief Marketing Officer at SEMI and president of SEMI Taiwan. Tsao explained that automakers must intensify their cooperation and alliance with semiconductor and other high-tech supply chains to secure a sufficient capacity supply and accelerate their development of innovative solutions.

Taiwanese companies recognize that they must initiate early deployment and maintain close ties with primary international automakers in order to grasp the pulses and business opportunities of the international market, and break into the core supply chain of global automotive electronics. Some have already done so. 

TSMC, for instance, has landed substantial chip production orders for a joint-venture EV brand between Sony and Honda, via a joint venture to build a new $7 billion fab in Japan. The goal is to mass-produce chips in that facility by 2024. TSMC also continues to fabricate automotive chips for Infineon, NXP, Renesas, STMicroelectronics, and TI.

SEMI Auto IC Master sponsors and partners include (alphabetically): Ali, the Automotive Research and Testing Center, Avisonic, Chivalry, Clientron, CubTEK, Elan, ESMT, Etron, Foxconn, Foxtron, Generalplus, Holtek, iCatch, ITE, Macronix, Novatek, PixArt, Realtek, and Sunplus.

The guide is available through an online account or in hard copy and can be purchased by contacting SEMI Taiwan.  

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