Automotive Semiconductor

Microchip expands TSMC partnership for semiconductor capacity boost

CHANDLER, Ariz., April 8, 2024 — Microchip Technology announced that it has expanded its partnership with TSMC (Taiwan Semiconductor Manufacturing Company), to enable a specialized 40 nm manufacturing capacity at Japan Advanced Semiconductor Manufacturing, Inc. (JASM). TSMC is majority shareholder in JASM and Sony Semiconductor Solutions is minority shareholder in this. This partnership is part of its ongoing strategy to build resiliency in its supply chain.

Microchip Technologies is a key customer of TSMC and through the expansion of partnership
Microchip secures a dedicated portion of JASM’s production line for manufacturing Microchip’s products using the 40nm process. This partnership strengthens Microchip supply chain by diversifying manufacturing base and reducing reliance on any single location.

“Microchip’s reputation for providing responsible and reliable supply management is enhanced with this new TSMC manufacturing path,” said Michael Finley, Microchip senior vice president of worldwide manufacturing and technology. “Customers can have confidence when designing our products into their applications and platforms, with the support of resilient and robust manufacturing capabilities.”

The wafer capacity supply from JASM further strengthens Microchip’s ability to serve a broad base of global customers. This includes various markets such as automotive, industrial, and networking applications.

“This initiative with Microchip is further proof of TSMC’s commitment to supporting our customers’ long-term growth and innovation,” said Rose Castanares, senior vice president of business management at TSMC North America. “Our expanded collaboration with Microchip will ensure that leading technologies continue to develop. Our collective ability to manufacture and deliver those capabilities to global customers will also grow as a result.”

The TSMC partnership adds more assurance to the manufacturing landscape. It helps reduce Microchip’s potential of disrupted supply by offsetting external factors such as frequently changing business conditions and natural disasters.

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