Microchip Technology has partnered TSMC for a specialised 40 nm manufacturing capacity at Japan Advanced Semiconductor Manufacturing (JASM).
JASM is TSMC’s majority-owned manufacturing subsidiary in Kumamoto Prefecture, Japan. It will provide wafer capacity for Microchip, enabling the company to increase its supply chain resiliency.
Microchip said it is also working on other initiatives including investing in additional technology to boost internal manufacturing capabilities and capacity and establish more geographical diversity and redundancy with wafer fab, foundry, assembly, test and OSAT partners.
Microchip's senior vice president of worldwide manufacturing and technology, Michael Finley said the company's reputation for providing reliable supply management is enhanced with this new TSMC manufacturing path.
“Customers can have confidence when designing our products into their applications and platforms, with the support of resilient and robust manufacturing capabilities," he added.
The wafer capacity supply from JASM is hoped to strengthen Microchip’s ability to serve a broad base of global customers in a variety of markets including automotive, industrial and networking applications.
While TSMC's primary clients include Apple, Nvidia, Qualcomm and more, some of Microchip's largest customers are Boeing, Lockheed Martin (LMT), Apple and Dell.
The partnership aims to help reduce Microchip’s potential of disrupted supply by offsetting external factors such as frequently changing business conditions and natural disasters.
Recently in January 2024, Microchip was also awarded US$162 million (S$219 million) in funding from the US CHIPS and Science Act for the expansion and modernisation of the company’s Colorado and Oregon plants.
