ST acquiring majority stake in SiC wafer maker Norstel

STMicroelectronics of Geneva, Switzerland has signed an agreement to acquire a majority stake in Norstel AB of Norrkoping, Sweden, which was spun off from Linköping University in 2005 and develops and manufactures 150mm silicon carbide (SiC) bare and epitaxial wafers. ST says that, after closing, it will control the entire supply chain for a portion of its SiC devices at a time of constrained global capacity and position itself for a significant growth opportunity.

ST will acquire 55% of Norstel’s share capital, with an option to acquire the remaining 45% subject to certain conditions, which, if exercised, will result in total consideration of $137.5m, funded with available cash.

“ST is the only semiconductor company with automotive-grade silicon carbide in mass production today,” claims president & CEO Jean-Marc Chery. “We want to build on our strong momentum in SiC, both in volume and breadth of applications for industrial and automotive, targeting continued leadership in a market estimated at more than $3bn in 2025,” he adds. “The acquisition of a majority stake in Norstel is another step forward strengthening our silicon carbide ecosystem: it will boost our flexibility, improve yield and quality, and support our long-term silicon carbide roadmap and business.”

See related items:

Cree and ST sign multi-year SiC wafer supply agreement

Norstel completes 150mm SiC n-type wafer development

Tags: SiC substrates Power electronics STMicroelectronics

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