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© Norstel Business | February 07, 2019

STMicro to acquire majority stake in Swedish SiC wafer manufacturer

STMicroelectronics says it has signed an agreement to acquire a majority stake in Swedish silicon carbide (SiC) wafer manufacturer Norstel AB. The transaction will extend ST’s silicon carbide ecosystem and strengthen its flexibility to serve automotive and industrial applications.

After closing, ST will control the entire supply chain for a portion of its SiC devices at a time of constrained global capacity and positions 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 USD 137.5 million, funded with available cash, the company disclose in a press release. "ST is the only semiconductor company with automotive-grade silicon carbide in mass production today. 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 $3 billion in 2025," said Jean-Marc Chery, President and CEO of STMicroelectronics, in the release. "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." Norstel, headquartered in Norrköping, Sweden, was founded in 2005 as a spinoff of Linköping University. It develops and manufactures advanced 150mm silicon carbide bare and epitaxial wafers.
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August 21 2019 3:49 pm V14.1.4-2