Sanan and STMicroelectronics Invest in 200mm SiC Plant in Chongqing, China
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Update time : 2023-06-10 10:01:47
The day before yesterday, STMicroelectronics announced on its official website that it will set up a 200mm silicon carbide device manufacturing joint venture division with Sanan Optoelectronics in Chongqing, China, which is expected to go into production in the fourth quarter of 2025 and is expected to generate more than $5 billion in silicon carbide revenue by 2030. Completion of the project is subject to regulatory approval.
It is reported that the total construction of the joint venture plant is expected to total about $3.2 billion, of which capital expenditures over the next five years will be about $2.4 billion, with funding sources including capital investment from STMicroelectronics and Sanan Optoelectronics, support from the Chongqing government and external loans from the joint venture.
The new silicon carbide plant is scheduled to start production in the fourth quarter of 2025 and is expected to be fully completed in 2028 to support the growing demand for automotive electrification and industrial power and energy applications in China, according to the company. Meanwhile, Sanan Opto will separately build and operate a new 200mm SiC substrate manufacturing facility to meet the joint venture's needs. Notably, the joint venture will use ST's proprietary SiC manufacturing process technology to produce SiC devices exclusively for ST and to serve as a dedicated foundry for ST to support the needs of its Chinese customers.
The combination of Sanan Opto's future 200mm substrate fabrication facility with the front-end joint venture 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 Jean-Marc Chery, President and CEO of STMicroelectronics. This is an important step in the further expansion of ST's global SiC manufacturing business and is part of ST's ongoing major investments in Italy and Singapore.
In addition, Jean-Marc Chery said the joint venture is expected to be one of the enablers of the opportunity we see to reach more than $5 billion in SiC revenues by 2030. This initiative is in line with ST's 2025-27 revenue target of more than $20 billion and the related financial model, previously communicated to the financial markets.
Simon Lin, CEO of Sanan Optoelectronics, said the joint venture will be a major driver for the widespread adoption of silicon carbide devices in the Chinese market. In turn, Sanan will provide silicon carbide substrates for this new joint venture through the construction of a dedicated new silicon carbide substrate plant. This is an important step for Sanan Optoelectronics to move towards a silicon carbide foundry. With this new joint venture and the new SiC substrate capacity expansion, Sanan is confident that it will continue to be a leader in the SiC foundry market.
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