ST To Acquire Majority Stake In SiC Wafer Firm
Nortel acquisition will extend ST's SiC ecosystem and flexibility to serve fast growing automotive and industrial applications
European semiconductor company STMicroelectronics has signed an agreement to acquire a majority stake in Swedish SiC wafer manufacturer Norstel AB. 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 percent of Norstel's share capital, with an option to acquire the remaining 45 percent subject to certain conditions, which, if exercised, will result in total consideration of $137.5 million, funded with available cash.
"ST is the only semiconductor company with automotive-grade SiC 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. "The acquisition of a majority stake in Norstel is another step forward strengthening our SiC: it will boost our flexibility, improve yield and quality, and support our long-term silicon carbide roadmap and business."
Norstel, headquartered in Norrkoping, Sweden, was founded in 2005 as a spinoff of Linköping University. It develops and manufactures advanced 150mm SiC bare and epitaxial wafers.