STMicroelectronics Expands SiC Capacity with Global Manufacturing Overhaul

On April 10, STMicroelectronics (ST) announced a sweeping strategic initiative to strengthen its competitive edge in the global semiconductor market. The plan focuses on optimizing manufacturing operations, investing in advanced technologies, and expanding its production capabilities—particularly in silicon carbide (SiC)—as demand surges for next-generation power electronics.

Strategic Investment in SiC and Advanced Manufacturing

ST plans to invest heavily between 2025 and 2027, prioritizing 300mm silicon and 200mm silicon carbide manufacturing infrastructure and R&D. The company aims to reshape its global footprint and build a complementary manufacturing ecosystem that ensures efficient resource allocation and maximized synergy.

Key highlights of the plan include:

Agrate (Italy): ST’s 300mm wafer fab in Agrate will double its output to 4,000 wafers/week by 2027, with the potential to scale up to 14,000 wafers/week via modular expansion. The fab will focus on smart power and mixed-signal technologies, while its 200mm facility will shift focus back to MEMS development.

Crolles (France): The Crolles 300mm fab will expand to 14,000 wafers/week by 2027, with plans to reach 20,000 wafers/week based on demand. ST also plans to upgrade its 200mm facility to support advanced packaging, optical sensors, and silicon photonics.

Catania (Italy): A new SiC campus will become operational by Q4 2025, supporting production of 200mm SiC wafers. This reinforces ST’s leadership in wide-bandgap power technologies.

Rousset and Tours (France): Rousset will fully utilize its 200mm capacity, while Tours will phase out 150mm production and take on panel-level packaging for chiplet architectures.

Ang Mo Kio (Singapore): The site will continue as a high-volume 200mm production hub, consolidating global 150mm wafer operations.

Kirkop (Malta): ST’s testing and packaging site will be automated and upgraded to handle next-generation product demands.

Financial Headwinds Amid Transformation

While executing this large-scale transformation, ST is facing notable financial pressure:

2024 net revenue: $13.27 billion, down 23.2% YoY

Net profit: $1.56 billion, down 63% YoY

Q1 2025 forecast: Revenue of $2.51 billion, down 27.6% YoY, with gross margin expected at 33.8% due to idle capacity and demand softness

By business segment, analog and imaging products saw a 15.5% decline in revenue and a 41.2% drop in operating profit. Automotive and CECP (communications, computer & peripherals) met expectations, while industrial product sales remained weak, reflecting delayed recovery in that sector—especially in Europe.

Leadership Shake-Up Draws Attention

Amid strategic expansion and financial challenges, ST is also experiencing internal governance tensions. The company's supervisory board recently rejected the appointment of Marcello Sala to the board of directors. Simultaneously, the Italian government withdrew support for CEO Jean-Marc Chery, citing unsatisfactory performance, and has requested that France consider replacing him.

Silicon Carbide: A Strategic Focus

ST’s investment in 200mm SiC production aligns with growing global demand for efficient power semiconductors in EVs, renewable energy, and industrial systems. The company currently commands over 50% of the global SiC MOSFET market and is pushing ahead of competition with its aggressive 8-inch roadmap.

Amid rising pressure from Chinese SiC vendors, who offer 20–30% lower pricing and are narrowing the performance gap, ST’s global scaling of capacity and technology is a timely response. The company’s strategic overhaul positions it to retain leadership as the SiC market accelerates over the next decade.