STMicroelectronics has signed an agreement to acquire a majority stake in the Swedish SiC wafer manufacturer Norstel AB.
Under the terms of the agreement, STMicroelectronics will acquire 55 percent of Norstel's share capital with the option to acquire the remaining 45 percent under certain conditions. If this is the case, the acquisition will have a total value of $137.5 million, financed from available cash and cash equivalents.
"ST is currently the only semiconductor company to mass-produce automotive-grade silicon carbide," said Jean-Marc Chery, President and CEO of STMicroelectronics. The company intends to leverage its strong momentum in SiC and maintain market leadership in a market estimated at more than $3 billion in 2025, "The acquisition of a majority stake in Norstel is another step in strengthening our silicon carbide ecosystem: it will increase our flexibility, improve yield, and quality and support our long-term SiC roadmap and business.
Norstel, based in Norrkoping, Sweden, was founded in 2005 as a spin-off of Linköping University. The company develops and manufactures 150mm SiC bare and epitaxial wafers.