Photo: Norstel AB
Global semiconductor company STMicroelectronics has signed an agreement to acquire a majority stake in Swedish silicon carbide (SiC) wafer manufacturer Norstel AB.
After closing the deal, 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 said in a press release.
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 $ 137.5 million, funded with available cash.
“ST is the only semiconductor company with automotive-grade silicon carbide in mass production today,” said Jean-Marc Chery, president and CEO of STMicroelectronics. “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.
“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 Norrkoping, Sweden, was founded in 2005 as a spinoff of Linköping University. It develops and manufactures advanced 150-mm silicon carbide bare and epitaxial wafers.
