St Microelectronics, an Italian-French manufacturer of semiconductor electronic components, has signed an agreement with Sanan Optoelectronics, a Chinese company specializing in composite semiconductors. The goal of this collaboration is the establishment of a manufacturing joint venture in Chongqing, China, which will focus on the production of silicon carbide (SiC) devices with a diameter of 200 mm. The main objective of this initiative is to respond to the growing Chinese demand for SiC devices used in thevehicle electrification and in industrial applications for energy and power.
Stm: the production times of the new plant
Production at the newly built SiC plant is expected to start in the last months of 2025, while the completion of the fabrication is scheduled for 2028. In addition, Sanan will establish and operate a separate SiC substrate manufacturing facility, which will serve the needs of the joint venture. This plant will use its own SiC substrate production process.
He budget
The joint venture will exclusively produce SiC devices on behalf of StMicroelectronics, making use of their proprietary manufacturing process technology and will also build a dedicated foundry for StMicroelectronics, in order to meet the demand of the company's Chinese customers. The entire implementation of the joint venture is expected to require a total investment of approx 3,2 billion dollars. This figure includes capital expenditures of approximately $2,4 billion, which will be covered by financial contributions from STMicroelectronics and Sanan over the next five years, with local government support and joint venture loans.
