STMicroelectronics Invests 5 Billion Euros in SiC Super Wafer Facility
In recent developments, STMicroelectronics has unveiled a strategic investment plan of 5 billion euros (equivalent to approximately 39.2 billion RMB) for the establishment of a Silicon Carbide (SiC) super semiconductor wafer fabrication facility in Catania, Sicily, Italy. This substantial initiative seeks to optimize the geographical footprint of the company across France and Italy while significantly advancing crucial technological research and development in support of electric vehicles.
In a bid to sustain and enhance competitiveness, STMicroelectronics is charting a course towards an 8-inch wafer manufacturing paradigm, commencing from the year 2024. This transformative endeavor encompasses the integration of Soitec's SmartSiC technology, a move aimed at augmenting operational efficiency and curbing carbon emissions. Concurrently, the company is actively bolstering production capacity, fortifying internal manufacturing capabilities, and fostering collaboration with the esteemed Chinese entity, Sanan Optoelectronics. The strategic alliance is geared towards elevating SiC chip-related revenue from an anticipated $1.2 billion this year to an ambitious $5 billion by the year 2030.
This collaboration marks a continuation of the partnership between STMicroelectronics and Sanan Optoelectronics. Earlier this year, on June 7th, the two entities formalized an agreement to establish a state-of-the-art 8-inch SiC device manufacturing facility in Chongqing, China, with a substantial total investment of $3.2 billion. To ensure seamless execution of this considerable investment initiative, Sanan Optoelectronics is set to independently construct and operate an 8-inch SiC substrate manufacturing facility. Leveraging proprietary SiC substrate processes, this facility will cater to the requirements of the joint venture plant, facilitating STMicroelectronics' swift integration into the 8-inch semiconductor landscape.
Market intelligence provided by TrendForce underscores the prevailing dominance of 6-inch SiC substrates, with the 8-inch variant constituting a mere 1% of the market share. The industry, however, is poised for a pivotal shift towards 8-inch substrates as a strategic imperative for mitigating SiC device costs. Notably, the larger 8-inch SiC substrates offer a pronounced cost advantage, signaling a discernible trend in the industry. Esteemed enterprises on both domestic and international fronts are actively steering research and development initiatives towards the advancement of 8-inch SiC substrates. This trajectory, following the reduction of substrate costs, is anticipated to catalyze widespread adoption of SiC devices, engendering a virtuous cycle within the industry.
This significant development has elicited positive responses from leading international semiconductor entities, with industry stalwarts such as Infineon and ON Semiconductor actively participating in the competitive landscape. Infineon, for instance, has progressed to the stage of preparing the inaugural batch of 8-inch wafer mechanical samples, positioning itself for large-scale production applications before the culmination of 2030. Concurrently, global device giants including ON Semiconductor and ROHM have articulated comprehensive development plans for 8-inch SiC wafers, actively engaging in and contributing to the dynamic market competition.
