Global SiC Powerhouse Reorganizes Eight Wafer Fabs Amid Intensifying Market Pressures

On April 10, STMicroelectronics (ST) unveiled a sweeping restructuring initiative targeting its global manufacturing infrastructure, with a focus on next-generation semiconductor technology. This strategic realignment affects eight wafer fabs worldwide, aiming to reinforce ST's leadership in wide bandgap semiconductors such as silicon carbide (SiC). At the same time, competitor onsemi faces market headwinds and is accelerating its transition to a Fab-lite model in response.

Rising Competition in the Global SiC Market

The global SiC industry is facing mounting pressure, especially as Chinese manufacturers rapidly gain traction by leveraging local supply chain efficiencies to undercut global competitors by 20–30%. Companies like TankeBlue and SICC have demonstrated robust capabilities in 6-inch substrates and are now developing 8-inch technology. Meanwhile, epitaxy providers such as Han Tian Tiancheng and Tianyue Semiconductor are benefiting from booming demand in EVs and renewable energy sectors.

In Europe, firms like ST, onsemi, and Infineon continue to lead the high-end SiC segment. ST has captured over 50% of the global SiC MOSFET market and is pushing into 8-inch wafer manufacturing. Infineon and onsemi are also advancing their own 8-inch capabilities, aiming to reduce production costs and improve performance.

STMicroelectronics: Strategic Overhaul of Eight Global Fabs

ST’s multi-year plan will span FY2025–2027, with major capital investments targeting 300mm silicon and 200mm SiC wafer technologies. The global realignment includes:

Agrate (Italy): Expansion of 300mm capacity, aiming for 4,000 wafers/week by 2027, scalable to 14,000 wafers/week. Its 200mm line will pivot back to MEMS development.

Crolles (France): 300mm fab capacity to increase to 14,000 wafers/week, with modular expansion up to 20,000. The 200mm facility will support high-volume die sorting and advanced packaging, focusing on optical sensing and silicon photonics.

Catania (Italy): ST's SiC flagship site will begin 200mm SiC wafer production by Q4 2025, bolstering its power semiconductor portfolio.

Rousset (France): Will continue 200mm production and absorb additional output from other sites for full utilization.

Tours (France): Will maintain part of its 200mm production while transferring its legacy 150mm lines. It will also take on panel-level packaging (PLP) and chiplet R&D.

Ang Mo Kio (Singapore): ST’s mature node hub will concentrate 200mm silicon production and consolidate global 150mm lines.

Kirkop (Malta): The packaging and test site will be upgraded with automation to support next-gen products.

This transformation comes amid financial strain. In 2024, ST’s net revenue fell by 23.2% YoY to $13.27 billion, with net profit plunging 63%. Its Q1 2025 guidance projects revenue of $2.51 billion, down 27.6% YoY.

Meanwhile, internal leadership tensions have surfaced. The ST supervisory board recently vetoed an Italian nominee to its board and withdrew support for current CEO Jean-Marc Chery, citing underperformance.

onsemi: Facing Market Contraction, Adopts Fab-lite Strategy

onsemi is also navigating rough waters. Its Q4 2024 revenue fell 14.65% YoY to $1.72 billion. Power solutions dropped 16%, analog and mixed-signal down 18%, while intelligent sensing dipped 2%.

Profitability suffered:

GAAP net income fell 32.5%

Non-GAAP net income declined 25.3%

Q1 2025 guidance remains cautious, with midpoint revenue projected to be 24.8% lower YoY.

In response, onsemi is aggressively adopting a Fab-lite model, focusing on:

Shutting down older, inefficient fabs (e.g., Southeast Asia) and reallocating capacity to more advanced plants in the U.S. and Europe

Retaining critical in-house manufacturing capabilities while outsourcing non-core steps to leading foundries like TSMC

Advancing from 6-inch to 8-inch SiC wafer production with planned volume shipments in 2025

Enhancing in-house SiC substrate and epitaxy capabilities through acquisitions and new fab investments

In December 2024, onsemi acquired UnitedSiC (SiC JFET business from Qorvo) for $115M to expand its EliteSiC product line. It also made a $6.9B acquisition offer for Allegro Microsystems, aiming to bolster its magnetic sensing and power IC portfolio, though Allegro's board rejected the offer as undervalued.

Outlook: SiC Market Shifting Toward Scale, Efficiency, and Integration

As EV adoption and AI applications surge, the global SiC semiconductor landscape is being redrawn. With aggressive cost competition from China and strategic consolidation in Europe and the U.S., incumbents must adapt—whether through fab restructuring, vertical integration, or Fab-lite transformations. The shift to 8-inch SiC wafers, increased fab automation, and broader strategic partnerships will likely define the next wave of industry leadership.