In June 2023, with the strong promotion of the Chongqing Municipal Party Committee and Government, the Chongqing Sanan Yifa Semiconductor Silicon Carbide Project signed a contract to settle in Xiyong Microelectronics Park, Chongqing High tech Zone, Western Science City. It is reported that the project includes not only the 8-inch silicon carbide (SiC) power device joint venture manufacturing plant Anyifa Semiconductor Co., Ltd., but also an 8-inch SiC substrate manufacturing plant (Chongqing Sanan Semiconductor Co., Ltd.) independently operated by Sanan and located in the same park to meet the SiC substrate needs of the joint venture plant.

   The milestone of AnYi Fa Tong Line marks that STMicroelectronics and Sanan are steadily moving towards the goal of producing 8-inch silicon carbide locally in China by the end of 2025, which will better meet the growing demand for silicon carbide in the Chinese new energy vehicle, industrial power supply, and energy markets.

   In recent years, driven by the wave of new energy vehicles, the popularity of silicon carbide with outstanding technological advantages has greatly increased. Especially in the Chinese market, due to the sudden rise of the new energy vehicle industry, the demand for SiC has also skyrocketed. Renowned analysis firm Yole Group predicts in a report that by 2029, the power SiC device market will reach nearly $10 billion, with automotive, mobile, and transportation accounting for nearly $8 billion.

   As a pioneer in the industry, ST's strength in SiC is beyond doubt. ST has partnered with Sanan to implement Anyifa in Chongqing, strongly supporting the development of China's new energy vehicle industry.

Chongqing is one of the most important industrial centers in China, especially in the automotive industry, where its position in the new energy vehicle market is prominent. At present, Chongqing is in a critical period of industrial transformation and upgrading, and the local government is also aiming to build a "smart manufacturing hub" and a "smart city", committed to becoming an important economic center, technology innovation center, and new highland of reform and opening up with national influence. The Anyifa 8-inch silicon carbide project will bring a productivity leap forward innovation to the development of Chongqing. Its online production will further improve Chongqing's power semiconductor industry chain, help Chongqing form an influential SiC industry cluster, and bring the "leading goose" effect to the national SiC industry chain.

   It is reported that this 8-inch silicon carbide (SiC) power device joint venture manufacturing plant, jointly established by Sanan Optoelectronics and ST, adopts ST's proprietary silicon carbide manufacturing process technology and serves as ST's dedicated OEM factory to support the needs of its Chinese customers. According to the plan, the total investment of the joint venture factory is expected to be about 23 billion yuan (3.2 billion US dollars) after its full completion, and it will become the first large-scale production line of 8-inch automotive grade silicon carbide power devices in China.

   Since the start of construction in September 2023, the Anyifa joint venture factory has steadily progressed according to the original plan over the past year. It will reach the "lighting up" condition by the end of November 2024 and be connected to the line on February 27, 2025. According to the expected plan, the joint venture plant will be put into operation in the fourth quarter of 2025 and is expected to reach production in 2028. At that time, it will be able to better meet the application needs of China's new energy vehicle industry, industrial power supply, and energy.

   More importantly, its forward-looking layout enables ST to provide local customers in China with better performance and lower price SiC device options.

Due to development reasons, SiC has been six inches for a long time in the past. However, due to the limited number of dies cut in a limited area, the cost of SiC is relatively high. So, like silicon devices, the industry has been developing towards large-sized wafers in recent years. Eight inch SiC has become the consensus choice in the industry.

   Thanks to over 25 years of research and development experience in the SiC field, ST produced the first batch of high-quality 8-inch silicon carbide wafers as early as 2021, with very few defects affecting yield and crystal dislocation defects. Compared to six inch wafers, the effective area of eight inch manufacturing integrated circuits has almost doubled, providing 1.8 to 1.9 times the number of working chips. By reducing edge waste, suppliers can further lower the cost of SiC.

   With the support of the Anyifa Silicon Carbide (SiC) wafer joint venture manufacturing plant, combined with the Sanan SiC substrate manufacturing plant and the expanding ST post packaging testing capacity, ST will form a complete localized 8-inch silicon carbide supply chain. While ensuring high-quality standards, ST will provide cost-effective SiC products for local manufacturers by reducing production and logistics costs, and even provide customized solutions for the Chinese market. Forming an 8-inch silicon carbide full chain industry chain from substrate epitaxy wafer packaging in China will also help improve the supply chain resilience of related industries in the country.

   For the rapidly developing Chinese new energy industry, ST's SiC joint venture is undoubtedly a huge boon. As far as ST is concerned, this is actually just a microcosm of their layout in China.