Taiwan-based lead frame makers including SDI and Jih Lin Technology have obtained new orders for intelligent power modules from China, according to industry sources.

China's electrical household appliances vendors Midea and Gree are keenly conducting in-house development of intelligent power modules (IPM), IGBT and other key chip components for their own products, prompting them to place orders with SDI and Jih Lin for leadframes needed to process the components, the sources said.

Jih Lin is expected to see the shipment ratio for IPM applications rise to 20% in 2021 from 15% in 2020 as a result of new orders from China's household appliance vendors, the sources continued.

Both leadframe makers will sustain strong shipment momentum through the fourth quarter of the year, also due to strong demand from first-tier automotive chips IDMs in Europe, the US and Europe, many of them having won solid foundry capacity support from TSMC, the sources said.

As copper accounts for 70-80% of leadframe production cost, SDI and Jih Lin are expected to gradually raise their quotes in the months ahead to reflect significant cost increases for the material, the sources indicated.