- STMicroelectronics N.V. STM collaborated with Sanan Optoelectronics to create a new 200mm silicon carbide device manufacturing JV in Chongqing, China.
- The new SiC fab will likely start production in Q4 2025 and full buildout by 2028, supporting the rising demand in China for car electrification and industrial power and energy applications.
- Correspondingly, 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.
- Also Read: STMicroelectronics & GlobalFoundries Seal Deal For French Factory Worth €7.5B
- Sanan Optoelectronics is a market leader in compound semiconductors in China, engaged in LEDs, SiC, Optical Communications, RF, Filters, and GaN products.
- 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 domestic demand.
- The total amount for the full buildout of the JV will likely be about $3.2 billion, including capital expenditures of approximately $2.4 billion over the next five years, financed by STMicroelectronics and Sanan Optoelectronics, local government support, and loans to the JV.
- Jean-Marc Chery, President and CEO of STMicroelectronics, said, "This JV is expected to be one of the enablers of the opportunity we see to reach $5B+ SiC revenues by 2030. This initiative is consistent with ST 2025-27 $20B+ revenue ambition and the associated financial model, previously communicated to the financial markets."
- Price Action: STM shares are trading higher by 3.15% at $46.24 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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