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 $137.5m (€120m), funded with available cash. This will allow control the entire supply chain for a portion of its SiC devices at a time of constrained global capacity.
"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. "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 150mm silicon carbide bare and 4H epitaxial wafers using chemical vapour deposition (CVD).
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