With an investment of $3 billion RMB, the new fab will work towards manufacturing components for solar panels, solar inverters, EV charging stations and EV battery management systems.
The US-based global semiconductor design and manufacturing firm SMC Diode Solutions has announced the opening of a second power discrete fab in China’s Nanjing region. The new fab has a yearly capacity of producing 1.2 million wafers, quadrupling the company’s total production capacity.
With an investment of $3 billion RMB, the new fab will commence shipping its product to customers in Q4 this year. To bolster employment, the company will also employ 300 fresh talents. According to SMC’s chairwoman and CEO, Yunji Corcoran, a couple of strategic factors, such as the staggering growth rate of green energy and the EV market, have helped SMC begin its second power discrete fab.
According to Corcoran, the power electronics industry is anticipated to reach $33.3 billion by 2028. SMC’s new China fab will manufacture cutting-edge components like Schottky rectifiers, ultrafast rectifiers, silicon carbide Schottky barrier diodes and MOSFETs. “The investment underscores confidence in SMC’s market vision and product excellence. Our focus on the renewable energy sector attracted significant investment, supporting our expansion,” added Corcoran.
The company also believes that the new fab will help solidify its position in China and international chip markets. When Corcoran was asked about opening the new facility in Nanjing, she added that the new unit is close to the current facility. Since the region is equipped with renowned universities and institutions, it will be an impeccable location to expand growth. The company will work towards developing the renewable energy sector in its new fab by manufacturing a wide range of green products such as components for solar panels, solar inverters, EV charging stations and EV battery management systems.
Moreover, the crucial applications in photovoltaic junction boxes, such as power rectifiers and MOSFETs will also be produced in the new facility. The company is also said to have associated with two universities in Nanjing to train and employ fresh talents.
