STMicroelectronicsand Sanan Optoelectronics to advance Silicon Carbide ecosystem in China
Geneva(Switzerland) and Xiamen(China), June 7,2023 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, and Sanan Optoelectronics (SHA.600703), a market leader in compound semiconductors in China, engaged in LEDs, SiC, Optical Communications, RF, Filters and GaN products, today announced that they have signed an agreement to create a new 200mm silicon carbide device manufacturing JV in Chongqing, China. The new SiC fab is targeting to start production in Q4 2025 and full buildout is anticipated in 2028, supporting the rising demand in China for car electrification as well as for industrial power and energy applications. In parallel, 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.
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 the demand of its Chinese customers.The total amount for the full buildout of the JV is expected to be about $3.2 billion, including capital expenditures of about $2.4 billion over the next 5 years, which will be financed by contributions from STMicroelectronics and Sanan Optoelectronics, local government support, and loans to the JV.
“China is moving fast towards electrification in Automotive and Industrial and this is a market where STis already well-establishedwith many engaged customer programs. Creatinga dedicated foundry with a key local partner is the most efficientwaytoserve the rising demand of our Chinese customers.The combination of Sanan Optoelectronics’ future 200mm substrate manufacturing facility with the front-end JV and ST’s existing back-end facility in Shenzhen, Chinawill enable STto offer our Chinese customers a fully vertically integrated SiCvalue chain,” said Jean-Marc Chery, President and CEO of STMicroelectronics.“It is an important step to further scale up our global SiCmanufacturing operations, coming in addition to our continuingsignificantinvestmentsin ItalyandSingapore. This JV is expected to beone of theenablersof the opportunity we see to reach $5B+ SiCrevenues by 2030. This initiative is consistent with ST2025-27 $20B+ revenue ambition and the associated financial model, previously communicated to the financial markets.”
“The establishment of this joint venture will be a major driving force for the wide adoption of SiCdevices on the Chinese market,” said Simon Lin, CEO of Sanan Optoelectronics. “Being an international, well-known, high quality SiCfoundry service company, Sanan will also supply its SiCsubstrate to this new joint venture, by building a dedicated new SiCsubstrate factory.This is an important step for Sanan Optoelectronics’ ambitions as a SiCfoundry.With this new Joint Ventureand the new SiCsubstrate capacity expansion, we are confident that we will continue to take the lead in the SiCfoundry market.”
The completion of the project is subject to regulatory approvals.
Forward-looking Information (ST)Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those anticipated by such statements, due to, among other factors:
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About STMicroelectronicsAt ST, we are over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and connectivity. We are committed to achieving our goal of becoming carbon neutral by 2027. Further information can be found at www.st.com.
About Sanan OptoelectronicsSanan is engaged in the research, development and manufacturing of a wide range of compound semiconductor products, including SiC, GaN, full range visible LEDs, Optical Communications, RF, Filters, infrared, UV products. It currently runs the largest compound semiconductor foundry capacity in China. Further information can be found at www.sanan-e.com.
For further information, please contact:
STMICROELECTRONICSMEDIA RELATIONS:Alexis BretonCorporate External CommunicationsTel: + 33 6 59 16 79 08alexis.breton@st.com
INVESTOR RELATIONS:Céline BerthierGroup VP, Investor RelationsTel: +41 22 929 58 12celine.berthier@st.com
SANAN OPTOELECTRONICSLi XuetanSecretary of the board, Investor RelationsTel:+86 13886596919600703@sanan-e.com
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