With the substrate factory set to start production two months early, STMicroelectronics and Sanan’s $3.2 billion joint silicon carbide wafer fabrication project in Chongqing is in the final stages.
The project of an 8-inch silicon carbide (SiC) wafer fab in China between European company STMicroelectronics and Chinese Sanan Optoelectronics, with a total investment of around US$ 3.2 billion is nearing completion, according to a report by Chongqing News Broadcast.
The substrate factory, initially scheduled to start later, is now expected to begin production this month, two months ahead of schedule. San’an Semiconductor funds the factory, which is set to produce 480,000 8-inch SiC substrates per year.
STMicroelectronics and Sanan announced the joint venture in Chongqing, China, earlier this year to meet the growing demand for SiC devices. The new 200mm automotive-grade SiC metal-oxide-semiconductor field-effect transistor (MOSFET) power chip fabrication facility was supposed to commence production in Q4 2025, with full completion expected by 2028. It was funded by both companies, local government support, and loans.
Simultaneously, Sanan was to build a separate 200mm SiC substrate manufacturing plant to supply the joint venture. It founded a subsidiary, ‘Chongqing Sanan,’ specifically for this factory, with a total investment of approximately Chinese Yuan 7 billion.
The company has now announced that the project is currently in the critical phase of equipment installation and commissioning. The substrate factory is expected to be operational by the end of August, while the chip factory is projected to start entire operations by the end of November.
‘Sanan STMicroelectronics’, a joint venture established in August 2023, is owned 51% by Hunan Sanan and 49% by ST (China) Investment. The venture has a registered capital of US$ 612 million.
A report by South China Morning Post saw this venture as China’s focus on maintaining strength in ‘legacy semiconductors’ (chips using 28-nanometer process technology or older) amid US trade restrictions on advanced chips and equipment.
