STMicroelectronics (NYSE:STM) and Sanan Optoelectronics signed an agreement to create a new 200mm silicon carbide device manufacturing joint venture (JV) in Chongqing, China.
The companies said the new SiC fab aims to start production in Q4 2025 and full buildout is expected in 2028, to support the rising demand in China for car electrification, industrial power and energy applications.
The total money required for the full buildout of the JV is expected to be ~$3.2B, including capital expenditures of ~$2.4B over the next 5 years. The project will be financed by STMicroelectronics, Sanan, local government, and loans to the JV.
The companies said the JV will make SiC devices exclusively for STMicroelectronics, using ST proprietary SiC manufacturing process technology, and will be a dedicated foundry to ST to support demand of its Chinese customers.
Meanwhile, Sanan will build and operate separately a new 200mm SiC substrate manufacturing facility for the JV’s requirement using its own SiC substrate process, the companies added.
“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,” said STMicroelectronics’ President and CEO Jean-Marc Chery.