STMicroelectronics (NYSE:STM) and Sanan Optoelectronics (600709.SS) have agreed to form a joint venture to manufacture silicon carbide (SiC) devices in China. The venture, which will be called STMicroelectronics-Sunan Silicon Carbide (SSC), will have a total investment of $3.2 billion.
SiC is a compound semiconductor that is used in a variety of power electronics applications, including electric vehicles, solar inverters, and industrial motors. It is a more efficient and durable material than traditional silicon, making it ideal for these high-performance applications.
The SSC venture will be located in Shanghai, China, and will have a production capacity of 100,000 wafers per year. The first phase of the project is expected to be completed in 2024, with full production expected by 2026.
The formation of the SSC venture is a sign of the growing demand for SiC devices in China. The Chinese government has set ambitious goals for the adoption of electric vehicles and other clean energy technologies, and SiC is a key component in these technologies.
The SSC venture will help STMicroelectronics and Sanan to meet the growing demand for SiC devices in China. It will also help to strengthen the global SiC supply chain and accelerate the adoption of SiC technology.
Quotes:
- "The establishment of this joint venture will be a major driving force for the wide adoption of SiC devices on the Chinese market," said Simon Morris, CEO of STMicroelectronics.
- "This partnership with STMicroelectronics is a strategic move for Sanan," said Zhang Hongjiang, chairman of Sanan Optoelectronics. "It will help us to expand our SiC manufacturing capacity and meet the growing demand for SiC devices in China and around the world."
Analysis:
The formation of the SSC venture is a positive development for the SiC industry. It will help to meet the growing demand for SiC devices in China and around the world, and it will strengthen the global SiC supply chain. The venture is also a sign of the growing importance of SiC technology in the clean energy and electric vehicle markets.
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