STMPA ST Microelectronics

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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