(News Bulletin 247) – STMicroelectronics and Sanan Optoelectronics, a leader in the compound semiconductor market in China, today announced the signing of an agreement to create a new joint venture to manufacture carbide components. 200 mm diameter silicon in Chongqing, China.
This new silicon carbide plant aims to start production in the fourth quarter of 2025 with full capacity anticipated in 2028 to support China’s growing demand for automotive electrification as well as energy and power applications for the automotive industry. ‘industrial.
At the same time, Sanan Optoelectronics will separately build and operate a new 200 mm SiC substrate production unit to meet the needs of the joint venture, using its own silicon carbide substrate manufacturing technology.
The total amount required to reach full capacity of the joint venture is expected to be approximately $3.2 billion, including capital expenditures (capex) of approximately $2.4 billion over the next five years.
‘This joint venture should be one of the elements allowing us to seize the opportunity to reach a turnover of at least 5 billion dollars for SiC by 2030. This initiative is consistent with the ambition of ST to reach $20 billion in revenue and beyond by 2025-2027. ‘ said Jean-Marc Chéry, Chairman of the Management Board and CEO of STMicroelectronics.
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