Diodes, a global semiconductor manufacturing supplier, partnered with Taiwanese automobile and motorcycle electromechanical system integration company Sentec today to jointly hold the opening ceremony of their joint venture "DiodSent" which is expected to invest in the development of third-generation semiconductor automotive power modules and participate in the design of HEV (hybrid electric vehicles), PHEV (plug-in hybrid electric vehicles) and EV (electric vehicles).
Norway in Northern Europe and the Netherlands in Western Europe will ban the sale of traditional fuel vehicles from 2025. The major automotive powers of Germany, the United Kingdom, and Japan are expected to follow suit in 2035 which will gradually drive the penetration rate of electric vehicles. While the struggle for Taiwan’s EV market will be led by Hon Hai and Yulon joint venture "Foxtron" and the simultaneously established "MIH" platform.
▲Chairman, President, and CEO Keh-Shew Lu (Source: TechNews)
Diodes Chairman, President, and CEO Keh-Shew Lu stated, Diodes and Sentec participated in six months of marathon discussions and communication to jointly establish “DiodSent.” This joint venture combines Diodes’ R&D and innovation capabilities in the field of automotive chips and Sentec's experience in key heat dissipation materials and packaging technologies to enhance the added value of electric vehicle-related power modules and break the monopoly of major international manufacturers.
Diodes SVP Business Groups Gary Yu stated, DiodSent’s short term goal is to set up a production line with initial plans to establish a quality control system in Shanghai and other production lines in Taiwan. Annual production capacity is planned to be approximately 100,000 modules. The company’s goal is to expand production capacity to 500,000 modules within three years to enter Europe and China’s mini-vehicle power module supply chain and then prepare to win orders for electric vehicles from major international European and American manufacturers
Gary Yu indicated, DiodSent's mid-term goal is to continue investing capital, expanding production capacity, and developing high-power modules for electric vehicles in order to obtain orders from major international manufacturers. It will invest in the development of third-generation semiconductor automotive power modules. Long-term planning entails designing production in Longtan District, Taoyuan and China to meet the huge demand in electric vehicle related markets in the future.
DiodSent President Tony Huang stated, DiodSent’s current products have been designed for eMOVING electric two-wheelers, Honda mini-cars, and China's Wuling Hongguang mini-cars. Next, DiodSent’s products will focus on major international manufacturers such as Porsche and Tesla. Third-generation semiconductors will be used in conjunction with DiodSent green energy modules.
Tony Huang indicated, mass production of third-generation semiconductors is scheduled to begin around the middle of next year. Therefore, in the second quarter of this year, we will begin preparing project designs including medium/low-voltage modules and high-voltage modules. Planning takes six months and mass production will be possible in the second quarter of next year at the earliest. By then, the proportion of SiC modules will reach 80%.
▲Hu, Diodes SVP Business Groups Gary Yu, DiodSent VP Nai-si
DiodSent VP Nai-si Hu stated, there is a serious shortage of semiconductors right now but Diodes has its own fab with a supply rate of 60% and DiodSent packaging has a supply rate of 80%. As for the third-generation semiconductors, they are developed in-house and then contracted out. Like European and US companies, DiodSent has signed long-term contracts, so there is no need to worry. There is still some time before mass production. Next, equipment will be slowly moved into the factory.
Nai-si Hu indicated, Diodes and DiodSent have utilized vertical integration to achieve a current chip output efficiency 20~30%,greater than European suppliers, so cost can be reduced by 20~30%. They are also actively participating in the MIH platform to jointly bring new automotive power semiconductors to another level. In the next two or three years, we expect to bid for orders from major international manufacturers together.