STMicroelectronics, a global semiconductor supplier serving customers across the spectrum of electronic applications, and Sanan Optoelectronics (SHA.600703), a compound semiconductor supplier in China, announced that they have signed an agreement to create a new silicon carbide (SiC) 200 mm. JV device manufacturing.
The new SiC factory has a production target in the fourth quarter of 2025, with full construction scheduled for 2028. This will support China's growing demand for automotive electrification, as well as industrial power and energy applications. In parallel, Sanan Optoelectronics will separately build and operate a new 200mm SiC substrate manufacturing unit to meet the JV's needs, using its own SiC substrate process.
The JV will manufacture SiC devices exclusively for STMicroelectronics, using ST's proprietary SiC manufacturing process technology, and will serve as ST's dedicated foundry to meet its customers' demand.
The total amount for the complete construction of the JV is expected to be about US$3.2 billion, including capital expenditure of about US$2.4 billion over the next 5 years, which will be financed by contributions from STMicroelectronics and Sanan Optoelectronics, local government support and loans for the JV.
“China is moving rapidly towards electrification in the 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 meet the growing demand from our Chinese customers. Combining Sanan Optoelectronics' future 200mm substrate manufacturing facility with ST's existing front-end JV and back-end facilities in Shenzhen, China will enable ST to offer our Chinese customers a comprehensive value chain fully vertically integrated SiC technology.”
“The establishment of this joint venture will be an important driving force for the widespread adoption of SiC devices in the Chinese market,” added Simon Lin, CEO of Sanan Optoelectronics. "As an international, well-known, high-quality SiC casting services company, Sanan will also supply its SiC substrate to this new joint venture, building a new dedicated SiC substrate factory. This is an important step for the Sanan Optoelectronics’ ambitions as a SiC foundry.”
Project completion is subject to regulatory approvals.
