STMicroelectronics, a global semiconductor provider serving customers across the spectrum of electronics applications, and Sanan Optoelectronics (SHA.600703), a provider of compound semiconductors in China, announced that they have signed an agreement to create a new 200mm silicon-carbide (SiC) device manufacturing JV.
The new SiC fab has a target of production in Q4 2025, with a full buildout anticipated in 2028. This will support the rising demand in China for car electrification, as well as for industrial power and energy applications. In parallel, Sanan Optoelectronics will build and operate separately a new 200mm SiC substrate manufacturing facility to fulfill the JV’s needs, using its own SiC substrate process.
The JV will make SiC devices exclusively for STMicroelectronics, using ST proprietary SiC manufacturing process technology, and serve as a dedicated foundry to ST to support the demand of its customers.
The total amount for the full buildout of the JV is expected to be about $3.2 billion, including capital expenditures of about $2.4 billion over the next 5 years, which will be financed by contributions from STMicroelectronics and Sanan Optoelectronics, local government support, and loans to the JV.
“China is moving fast towards electrification in automotive and industrial [markets], and this is a market where ST is already well-established with many engaged customer programs,” said Jean-Marc Chery, president and CEO of STMicroelectronics. “Creating a dedicated foundry with a key local partner is the most efficient way to serve the rising demand of our Chinese customers. The combination of Sanan Optoelectronics’ future 200mm substrate manufacturing facility with the front-end JV and ST’s existing back-end facility in Shenzhen, China will enable ST to offer our Chinese customers a fully vertically integrated SiC value chain.”
“The establishment of this joint venture will be a major driving force for the wide adoption of SiC devices on the Chinese market,” added Simon Lin, CEO of Sanan Optoelectronics. “Being an international, well-known, high quality SiC foundry service company, Sanan will also supply its SiC substrate to this new joint venture, by building a dedicated new SiC substrate factory. This is an important step for Sanan Optoelectronics’ ambitions as a SiC foundry.”
The completion of the project is subject to regulatory approvals.
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