STMicroelectronics announces the closing of the full acquisition of Swedish silicon carbide (SiC) wafer manufacturer Norstel AB (“Norstel”). ST exercised its option to acquire the remaining 45% stake, following the initial transaction announced in February 2019. The total consideration for the acquisition of Norstel was $137.5 million, funded with available cash.
“At a time of constrained global capacity for silicon carbide, the full acquisition of Norstel will strengthen our internal SiC ecosystem: it will boost our flexibility, allow us to control better the improvement of yield and quality of the wafers, and support our long-term silicon carbide roadmap and business,” said Jean-Marc Chery, President and CEO of STMicroelectronics. “This acquisition comes in addition to wafer supply agreements signed with third parties, with the overall goal to secure the required level of wafers to manufacture MOSFET and diodes for the automotive and industrial customer programs that will ramp up over the next years.”
Norstel will be fully integrated into ST’s global R&D and manufacturing operations. It will continue growing its activities covering both the production of 150mm bare and epitaxial silicon carbide wafers and R&D on 200mm production as well as, more broadly, on wide bandgap materials.