Automotive manufacturers are facing radical changes to their businesses with the emergence of new Digital technology. The booming automobile electronics business is to profit the backend service firms by generating revenues from the power semiconductor sector.
Taiwan’s share in overall IC Business
The major benefit is expected to be gained by the Taiwan-based IC backend service firms which include Advanced Semiconductor Engineering (ASE), Etrend Hightech, Lingsen Precision Industries and GEM Services because of the focus on automobile electronics devices by global IDMs such as Infineon Technologies and NXP Semiconductors.
ASE which recently received awards in the Taiwan Corporate Sustainability Awards is one of leading backend service firms for MOSEFT chips, and the other one is GEM, which recently announced that it is establishing a joint-venture company with Mitsubishi Electric Corporation to manufacture energy-saving power semiconductor modules in China.
They are expected to generate revenues of NT$2-3 billion and NT$3 billion respectively. ASE received four awards at TCSA held on November 23, 2017. TCSA is an annual sustainability award program that awards local and foreign enterprises’ outstanding efforts in sustainable development issues and is organized by the Taiwan Institute for Sustainable Energy.
ASE was recognized in the following award categories:
1. Top 50 corporate sustainability report in Taiwan – Gold award
2. Innovation and growth in sustainability
3. Leadership in climate sustainability
4. Supply chain management sustainability
Infineon and NXP account for 11%and 14% of the total revenue through semiconductors respectively and the two firms are expected to continue to enhance their presence in the ADAS (Advanced Driver Assistance Systems) as well as electric and autonomous driving sectors.
The booming automobile electronics business will also help ramp up revenues at backend services for analog ICs, power semiconductors and power modules
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