Infineon has reached a long-term strategic cooperation agreement with UMC to expand cooperation in the automotive microcontroller business, according to a news release on their official website on Tuesday, according to foreign media reports.
From what Infineon announced on its official website, the two companies are still cooperating in the production of Infineon microcontrollers. After reaching a long-term strategic cooperation agreement with UMC, their production capacity will be multiplied to better meet the growing market demand.
Under the new long-term strategic cooperation agreement, UMC will OEM high-performance microcontrollers for Infineon at their fab in Singapore, using a 40nm process. Infineon’s high-performance microcontrollers utilize their proprietary eNVM (embedded non-volatile memory) technology.
Microcontrollers are key components for controlling multiple functions in automobiles, and the demand for microcontrollers is increasing dramatically as cars become more environmentally friendly, safe and smart. This year, Infineon has increased its sales rate of automotive microcontrollers to close to 1 million per day.
Commenting on the new long-term strategic partnership agreement, Infineon COO Rutger Wijburg said that with the new strategic partnership agreement, they have secured additional long-term capacity to serve customers in the fast-growing automotive market.
Executives from UMC also said they are pleased that Infineon has chosen their Singapore facility to manufacture automotive microcontrollers and that the new multi-year supply agreement will strengthen their long-term relationship with Infineon in multiple areas such as automotive and artificial intelligence IoT.
