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China chipmakers on capacity expansion spree for car-use power devices
Staff reporter, Taipei; Willis Ke, DIGITIMES AsiaTuesday 27 September 2022
Credit: DIGITIMES
While weak demand for consumer chips lingers, structural shortages of automotive chips remains unresolved, prompting China semiconductor players including Zhuzhou CRRC Times Electric (TEC) to strengthen investments in capacity expansions for car-use power components such as IGBT and MOSFET to satisfy domestic demand, according to industry sources.
China has become the world's largest market for new energy vehicles, but remains highly reliant on imports for low- and medium-voltage power modules. This has driven Chinese semiconductor players to step up investments in technology innovations and capacity expansions, the sources said.
TEC has recently announced it will invest CNY11.12 billion (US$1.55 billion) in expanding production capacity for low-and medium-voltage power components. The investment includes CNY5.83 billion for doubling monthly capacity at its Yixing facility in Jiangsu province to 60,000 8-inch wafers for power devices used in new energy vehicles.
Another CNY5.29 billion will be used to boost the monthly capacity of its Zhuzhou plant in Hunan province by 30,000 pieces for power components for new energy power generation, industrial control and household appliances applications.
TEC's wholly-owned semiconductor subsidiary has landed four-year orders for IGBT modules from French components vendor Valeo, and is set to start mass production in 2023, with aggregate shipments estimated to exceed 2.5 million sets during the period, the sources noted. The deal is expected to help the company tap deeper into overseas markets in addition to serving domestic clients, stressed the sources.
Many other Chinese peers also join the capacity expansion spree. Jiangsu Jie Jie Microelectronics has just completed its first-phase facility for high-end power components entering trial production on schedule. The company will also expand capacity for MOSETs at its facilities in Wuxi and Shanghai.
Resources West Microelectronics (Chongqing), a wholly-owned subsidiary of China Resources Microelectronics, is carrying out a CNY7.55 billion investment project to build a 12-inch wafer fab for medium- and high-end power devices, which will have a monthly capacity set at 30,000 pieces, with part of the investment fund bolstered by China IC Industry Investment Fund, also known as Big Fund.
Xiamen Silan Microchip Manufacturing, a subsidiary of Hangzhou Silan Microelectronics is slated to commercialize its second-phase facility in Xiamen by the end of 2022, when its monthly capacity will rise to 60,000 12-inch wafers, including 20,000 pieces for IGBT devices.
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