Trending: STMicroelectronics Taps Into Rising Demand for Semiconductors in China
June 07 2023 - 10:03AM
Dow Jones News
1333 GMT STMicroelectronics is among the most mentioned
companies across news items over the past six hours after news that
the company plans to create a semiconductor-manufacturing joint
venture in China. The European player is partnering with Sanan
Optoelectronics to develop a JV focused on silicon carbide device
manufacturing in order to meet rising demand for semiconductors for
car electrification, industrial power and other energy
applications. The project will support STMicroelectronics' aim to
drive silicon carbide revenue from $1.2 billion this year to over
$5 billion by the end of 2030, while also helping it strengthen its
relationships with EV and industrial-power supply chains in China,
according to analysts at Citi. It also shows a broader trend, as
the news comes after Infineon announced last month two agreements
with Chinese manufacturers, "suggesting the SiC [silicon carbide]
ecosystem in China is developing quickly," the analysts say in a
note. Funding for the JV, which is expected to cost $3.2 billion
for the full build-out, will come from STMicroelectronics and Sanan
Optoelectronics, with the support of the local government and
loans, the companies said. Dow Jones & Co. owns Factiva.
(giulia.petroni@wsj.com)
(END) Dow Jones Newswires
June 07, 2023 09:48 ET (13:48 GMT)
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