Joint Venture STMicroelectronics and Sanan Optoelectronics

 

 

 

STMicroelectronics and China’s Sanan Optoelectronics have reached a major milestone in their joint venture dedicated to the production of silicon carbide (SiC) semiconductors. The companies announced the completion of a key section of their new facility in Chongqing, a project launched in June 2023 and partially supported by the local government.

With a total planned investment of USD 3.2 billion over the next five years, including approximately USD 2.4 billion in capital expenditures, the venture aims to start volume production in Q4 2025 and achieve full capacity by 2028. Once fully operational, the site will be capable of producing up to 10,000 SiC wafers per week — equivalent to about 480,000 wafers annually — positioning the joint venture among the world’s leading SiC manufacturing hubs.

For STMicroelectronics, which has recently faced challenges related to financial performance and governance between Italy and France, this partnership represents a positive and strategic development. The new Chongqing facility marks the launch of large-scale production in China of 8-inch SiC power chips, primarily targeting the automotive sector but also addressing a variety of industrial applications.

As China’s electric vehicle (EV) market continues to expand, demand for SiC components is surging. Industry forecasts suggest that SiC device prices could drop by 40–50% within the next two years as production  volumes increase and processes mature. ST projects that SiC technology will enable EVs to travel up to 600 kilometers per charge and recharge fully in as little as 20 minutes, underscoring its potential to redefine sustainable mobility.

The joint facility is located within the Xiyong Microelectronics Industrial Park, at the center of Chongqing’s high-tech development zone. In addition to the chip fabrication plant, a 200 mm SiC substrate production line operated by Sanan is also being developed. This site will leverage Sanan’s proprietary manufacturing processes to support the joint venture’s production needs.

 

 

According to TrendForce, the Chinese SiC power device market is expected to reach USD 2.2 billion in 2025, and an impressive USD 6.1 billion by 2030.
This growth reinforces the joint venture’s role as a strategic driver in advancing global electrification, efficiency, and technological innovation.