ST and Sanan Launch 8-inch SiC Wafer Production Line
On February 27, San'an Optoelectronics and STMicroelectronics officially commenced operations at their joint venture, the San'an-ST project, located in Chongqing. The new facility focuses on the production of silicon carbide (SiC) wafers for automotive applications. The project is set to reach mass production by the fourth quarter of 2025, becoming the first large-scale production line in China for 8-inch automotive-grade SiC power chips. Upon full ramp-up, the plant is expected to produce around 10,000 automotive-grade wafers per week.
San'an Optoelectronics' Vice Chairman, General Manager, and Chairman of San'an STMicroelectronics, Lin Kechuang, shared at the 2025 Power Semiconductor Manufacturing and Supply Chain Summit in Chongqing that Chinese-made SiC power chips will undergo significant large-scale adoption in automotive applications within the next one to two years. He also projected that the cost of SiC power chips could decrease by 40% to 50% in the same time frame.
Jean-Marc Chery, President and CEO of STMicroelectronics, expressed his optimism about the 20-month development of the SiC wafer plant, emphasizing the goal of integrating ST's SiC technology into the rapidly growing Chinese electric vehicle (EV) ecosystem. By prioritizing local production, STMicroelectronics aims to reduce import dependence and enhance its technological expertise. SiC technology will also contribute to EVs achieving a range of 600 kilometers and enabling rapid 20-minute charging.
San'an STMicroelectronics was established in August 2023, with San'an holding a 51% stake and STMicroelectronics China holding 49%. The project is set to invest around ¥23 billion and will include an 8-inch SiC wafer production line with an annual capacity of 480,000 wafers. The primary focus will be on automotive-grade power control chips. To support this project, San'an Optoelectronics also set up Chongqing San'an Semiconductor in July 2023, investing ¥7 billion in a dedicated 8-inch SiC substrate production line, which is scheduled to begin production in September 2024.
Lin Kechuang forecasts that the market for automotive SiC power devices in China will grow at a compound annual growth rate (CAGR) of 36% from 2022 to 2024, reaching ¥22.16 billion by 2028. The growing demand for efficient power modules (such as inverters and charging systems) in electric vehicles is driving the adoption of SiC power devices, which improve charging efficiency and extend driving range.
According to TrendForce, the Chinese SiC power device market is expected to reach $1.8 billion in 2024, with growth to $2.2 billion by 2025, and a projected $6.1 billion by 2030. With AnST Semiconductor ramping up production this year, the project is well-positioned to meet the increasing demand for SiC power devices in China's electric vehicle market, further strengthening Sanan Optoelectronics' position in the SiC sector.
