The SiC devices will be used in automotive, industrial and energy industries. Credit: William Potter via Shutterstock.

STMicroelectronics (ST), a Dutch semiconductor manufacturer, and Chinese company Sanan Optoelectronics have joined forces to set up a joint venture (JV).

The new $3.2bn facility will be located in Chongqing, China and focus on 200mm silicon carbide (SiC) device manufacturing.

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ST said the new SiC fab expects to begin production in the fourth quarter of 2025, with completion of the buildout scheduled in 2028.

The JV will produce SiC devices exclusively for ST to support the rising demand in China across automotive, industrial power and energy sectors.

Concurrently, Sanan Optoelectronics will construct and run a new 200mm SiC substrate manufacturing plant to cater to the demand of the JV.

STMicroelectronics president and CEO Jean-Marc Chery said: “The combination of Sanan Optoelectronics’ future 200mm substrate manufacturing facility with the front-end JV and ST’s existing back-end facility in Shenzhen, China will enable ST to offer our Chinese customers a fully vertically integrated SiC value chain.

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The funding for the JV will come from loans, local government assistance, contributions from ST and Sanan Optoelectronics.

“It is an important step to further scale up our global SiC manufacturing operations, coming in addition to our continuing significant investments in Italy and Singapore.

Sanan Optoelectronics CEO Simon Lin said: “The establishment of this joint venture will be a major driving force for the wide adoption of SiC devices on the Chinese market. This is an important step for Sanan Optoelectronics’ ambitions as a SiC foundry.”