China’s Wingtech Builds $ 1.8 Billion Plant To Make Semiconductor Products For Electric Vehicles

Chinese electronics manufacturer Wingtech Technology is investing $ 1.8 billion to build a semiconductor manufacturing plant for electric vehicles. Wingtech is building an enterprise in Shanghai together with the Dutch company Nexperia, over which the Chinese gained control back in 2018. The facility is expected to be commissioned next year.

The factory will manufacture discrete semiconductors, including power transistors. The production capacity of 400,000 plates with a diameter of 300 mm per year will make the factory one of the largest specializing in discrete devices.

So far, Nexperia in China has only had the capacity for packaging and final testing of the chips. The new factory will be the first to manufacture and test wafers.

The main reason that prompted Wingtech and Nexperia to build is the global shortage of semiconductor products for automotive electronics. However, the source reminds that power semiconductor products are used not only there.

Another factor is called the fact that discrete devices are not subject to US sanctions. Unlike processors, discrete devices do not require complex manufacturing processes and can be produced on older equipment.

It remains to add that Nexperia is already the ninth largest power semiconductor manufacturer in the world. All in all, discrete devices will account for 38% of the total semiconductor output this year, which is predicted equal to 1.1353 trillion pieces.