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Dongfeng-backed chip producer to mass produce power semiconductor modules from April

Monika From Gasgoo| January 22 , 2021 20:55 BJT

Shanghai (Gasgoo)- Zhixin Semiconductor Co.,Ltd. (“Zhixin”), a chipset manufacturer backed by Dongfeng Motor Group, is expected to start running its power chip module assembly line with an annual capacity of 300,000 sets in April 2021, according to a local media outlet.

There are only three companies in China capable of researching, developing and manufacturing automotive power semiconductor modules, Zhixin is one of them, according to the local report.

Dongfeng-backed chip producer to mass produce power semiconductor modules from April

“The price of imported power semiconductor modules is pretty high, and the supplies may be cut off at any moment,” said Dong Hongzhi, executive vice general manager of Zhixin. To seize the initiative, Dongfeng Motor and CRRC, a Chinese state-owned rolling stock manufacturer, jointly founded Zhixin through which the two parties co-work on building facilities at Dongfeng's new energy vehicle industrial park in Wuhan for independent R&D, manufacture and sale of power semiconductor modules.

Registered in 2019, Zhixin involves a registered capital of 300 million yuan ($46.23 million), according to the corporate data platform Qichacha. Its business scope extends to cover the R&D, production, wholesale and retail of semiconductor products and relevant equipment. Its majority shareholder, Zhixin Technology Co.,Ltd., is held as to 82.14% by Dongfeng Motor Group Company Limited.

Volkswagen, Ford, FCA, Toyota, Nissan and Honda successively announced from late December 2020 they would cut vehicle production because of a shortage of microchips.

China has been at the top of the world by NEV annual sales for five consecutive years, while it still highly relies on imports in the supplies of power semiconductor modules with over 80% market share monopolized by such European and Japanese companies like Infineon, Valeo and Mitsubishi Electric.

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