STMicroelectronics to buy majority stake in chips manufacturer Norstel AB

by Autocar Pro News Desk , 07 Feb 2019

STMicroelectronics (ST), a Swiss-based global semiconductor leader serving customers across the spectrum of electronics applications, signed an agreement to acquire a majority stake in Swedish silicon carbide (SiC) wafer manufacturer Norstel AB ('Norstel'). With this, ST will control the entire supply chain for a portion of its SiC devices.

ST will acquire 55 percent of Norstel's share capital with an option to acquire the remaining 45 percent that would be subject to certain conditions. The consolidated value of the shares will result in total consideration of $137.5 million (Rs 984 crore), funded with available cash.

Jean-Marc Chery, president and CEO of STMicroelectronics said, "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 (Rs 21,474 crore) 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 Linkoping University. It develops and manufactures advanced 150mm silicon carbide bare and epitaxial wafers.