STMicroelectronics, Sanan Optoelectronics to Form $3.2 Billion China Joint Venture
07 June 2023 - 5:26PM
Dow Jones News
By Adria Calatayud
STMicroelectronics and Sanan Optoelectronics said Wednesday that
they are forming a semiconductor-manufacturing joint venture in
China, with $3.2 billion in total build-out funding.
The European and Chinese semiconductor companies said they have
signed an agreement to create a silicon-carbide-device
manufacturing project in Chongqing, China, to tap into rising
demand for semiconductors for car electrification as well as for
industrial power and energy applications in the country. Production
is expected to start in the fourth quarter of 2025, with full
build-out anticipated in 2028, the companies said.
The expected $3.2 billion for the full build-out of the joint
venture includes capital expenditures of about $2.4 billion over
the next five years, which will be funded by contributions from
STMicroelectronics and Sanan Optoelectronics, support from the
local government and loans, the companies said.
Sanan will separately build a silicon-carbide-substrate
manufacturing plant to fulfill the needs of the joint project, the
companies said.
Completion of the project remains subject to regulatory
approvals, STMicroelectronics and Sanan said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
June 07, 2023 03:11 ET (07:11 GMT)
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