STMicroelectronics and Sanan Optoelectronics will form a $3.2 billion joint venture in Chongqing, focusing on the production of silicon carbide devices for the electric vehicle, industrial power, and energy sectors. The new facility is expected to start production in Q4 2025, with full buildout planned for 2028.

“China is moving fast towards electrification in automotive and industrial. Creating a dedicated foundry with a key local partner is the most efficient way to serve the rising demand of our Chinese customers,” said Jean-Marc Chery, President and CEO of STMicroelectronics.