Geneva The chip group STMicroelectronics is working with the Chinese semiconductor group Sanan Optoelectronics. Both suppliers establish a joint venture in China for the production of 200 mm silicon carbide components. For this purpose, a factory is to be built in the People’s Republic, as STM announced on Wednesday in Geneva.
STM and Sana are investing a total of $3.2 billion (€3 billion) in the planned collaboration, more than two-thirds of which will be invested over the next five years. The companies also rely on subsidies from the Chinese government.
In the factory planned in Chongqing, China, production is scheduled to start in the fourth quarter of 2025, and capacities are to be fully expanded by 2028.
The joint venture will manufacture the components exclusively for STMicroelectronics, it said. In parallel, Sanan intends to construct and operate another new production facility for 200mm SiC substrates to further meet the needs of the joint venture.
Silicon carbide is used in electric cars, among other things. The hardness and chemical properties of the material with the chemical formula SiC enable lower power losses, so that electric cars can continue to drive with the same charging power.
STM boss Jean-Marc Chery expects to be able to achieve sales of 5 billion euros with SiC technology by 2030. China is considered an important market, the number of electric cars is growing rapidly there.
More: When realities merge: will Apple’s data glasses make a breakthrough?