In a move to bolster its supply chain resilience, Microchip Technology is extending its collaboration with TSMC, the semiconductor foundry, to establish dedicated 40nm manufacturing capabilities at Japan Advanced Semiconductor Manufacturing (JASM). Situated in Kumamoto Prefecture, Japan, JASM serves as TSMC’s majority-owned manufacturing subsidiary. This strategic partnership aligns with Microchip’s continued efforts to fortify its supply chain infrastructure.
In addition to the expanded partnership with TSMC, Microchip Technology is undertaking further measures to fortify its supply chain resilience. These efforts encompass investments in advanced technologies to enhance internal manufacturing capacities and capabilities. Moreover, Microchip is diversifying geographically and establishing redundancy across its partnerships with wafer fab, foundry, assembly, test, and OSAT (Outsourced Semiconductor Assembly and Test) partners.
“Microchip’s reputation for providing responsible and reliable supply management is enhanced with this new TSMC manufacturing path,” said Michael Finley, Microchip's 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.”
With the addition of wafer capacity from JASM, Microchip's capacity to cater to a diverse array of global clientele across automotive, industrial, and networking sectors is set to receive a significant boost. This development underscores Microchip's commitment to meeting the demands of various markets effectively.
“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 as leading technologies continue to develop, so will our collective ability to manufacture and deliver those capabilities to global customers when they are needed”.
Microchip's collaboration with TSMC and the expansion of JASM's capacity are geared towards enhancing manufacturing reliability and mitigating risks posed by potential supply chain disruptions. By countering external variables like evolving market dynamics and natural calamities, this strategic initiative aims to bolster Microchip's resilience against future challenges.