Home » To ensure IC chip supply, Buffett-backed BYD participates in a thin film materials manufacturing company VTFM

To ensure IC chip supply, Buffett-backed BYD participates in a thin film materials manufacturing company VTFM

by SEP Editor
5 mins read
(image:Vital materials)

Vital Thin Film Materials Co. Ltd

Vital Thin Film Materials (VTFM), part of the Vital Group, focuses on research, development, production, sales and recycling of sputtering targets and evaporation materials for physical vapor deposition (PVD). VTFM’s large product portfolio of high purity metals, complex metal alloys, precious metals and ceramics for Display, Photovoltaic, Semiconductor, Optics, LED, Data Storage and Glass applications is unmatched. Depending on material a wide variety of geometries are available, including, but not limited to: ingot, shot, powder, target (planar & rotary), disc, tablet and granulate.


VTFM consists of nearly 1000 employees across four manufacturing sites in Qingyuan CN, Hefei CN and Singapore, with sales offices around the world.

(image:TSMC)

Research, Development and Technology

VTFM’s R&D team works hand-in-hand with end-users to improve target performance and develop new material compositions applied in future technologies. Our application technology team employs state of the art metrology equipment to analyze and improve current and future products. Our customers view VTFM as a materials partner, helping to achieve better yields through material improvements.

According to a Chinese large enterprise data technology service company-TianYanCha  , BYD, Sinopec Capital which owned by Sinopec a giant Chinese old and gas enterprise , MingYang Smart energy, TBEA became the shareholder of Vital Thin Film Materials Co., Ltd (VTFM)on January 5th 2022 .

VTFM was founded on July 12, 2017. According to their official website, VTFM is dedicated to the research and development, production, sales and recycling of sputtering targets and evaporation materials for vacuum coating, and its products are widely used in the fields of display, photovoltaic, semiconductor, precision optics, data storage and glass.

Taking the application of their products in the semiconductor field as an example, VTFM can produce sputtering targets for integrated circuits which are the ESSENTIAL materials and widely being used in manufacturing IC chips.

VTFM developed and produced a lanthanum rare earth doped metal oxide (Ln-IZO) target for the G4.5 generation line, which was successfully delivered to Huaxing Optoelectronics. The target is a new generation of TFT semiconductor channel layer material, and its performance can fulfill the future demand for channel layer material for ultra-high definition display and flexible display applications.

“But Intelligent Vehicles(IVs) have a larger demand in semiconductors”

Chairman of BYD

”The demand for IC chips in EVs has increased by 5 to 10 times compared to conventional vehicles and the shortage has led to around 7 million electric vehicles not being produced globally. Meanwhile, EVs are the first-half of the market but Intelligent Vehicles are the second-half of the market. But Intelligent Vehicles(IVs) have a larger demand in semiconductors.” BYD Chairman Wang Chuanfu said that recently.

Clearly, along with the strong deliveries in December from BYD  and the shortage of IC chips, BYD reacts quickly to the rapid changes in demand and supply market. The deduction of subsidies from the Chinese Government and the upcoming “threat”-huge demand on IC chips from Intelligent Vehicles may increase the production cost of firms. One of the keys to success would be having a stable and controllable industry-chain. BYD is doing a good job in safeguarding its supply-chain and preparing for the demand of the global market.

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