Taiwan leadframe makers are likely to raise quotes for leadframes for packaging automotive chips and power modules by 5-10% to reflect increased material costs amid increasing demand from international IDMs, according to industry sources.

Leading IDMs Infineon, On-Semi and Rohm Semiconductor have ramped up orders for leadframes needed to process automotive chips and power modules, with clear order visibility extended throughout first-half 2021 from March-April. This, coupled with international copper prices already galloping to US$7,000-8,000 from US$5,000-6,000 per metric ton, has allowed justifiable room for leadframe makers SDI and Jih Lin Technology to hike quotes, the sources said.

Leadframes now account for 20% of unit costs for automotive power modules, and 5-10% price hikes would be acceptable to clients, given that copper commands up to 70% of leadframe costs and copper prices have risen around 40% over the past months, the sources continued.

SDI and Jih Lin both offer mainstream leadframes for packaging IGBT and SiC (silicon carbide) power modules rolled out by IDMs for automotive and industrial control applications, and have also tapped into the supply chain of EV vendor Tesla. Both makers expect leadframes for BMS (battery management system) modules to be the largest growth driver for their 2021 revenues, with shipments of automotive power leadframes to contribute 40% of their respective revenues for the year.