STMicroelectronics (ST), as a leading global semiconductor supplier, has attracted much attention for its layout in the Chinese market. Recently, the "2025 STM32 Summit of STMicroelectronics" was held in Shenzhen, where ST and domestic engineers and media elaborated on its technology, products, and strategic layout in depth.
As the first overseas semiconductor giant to deeply implement the concept of "in China, for China", what are the unique features of ST's localized production in China? This article will delve into the progress of ST's highly anticipated "MCU dual supply chain" and "Chongqing SiC factory" in China.
MCU Dual Supply Chain: The "Chip" Dynamic Connection between ST and the Chinese Market
At the end of 2024, in the context of increasing attention to supply chain security, ST announced the commission of Huahong to manufacture 40nm eNVM MCU products, achieving localization of STM32 products and providing customers with a seamless second source verification process. According to ARNAUD JULIENNE, Vice President of Digital Marketing at ST China, the production line will achieve mass production by 2025.
Image: ARNAUD JULIENNE, Vice President of Digital Marketing at ST China
ST has innovatively opened up the dual supply chain path of MCU in China, becoming a pioneer among international giants. This strategy will create a solid security barrier for MCU.
Firstly, in terms of production technology, the cooperation between ST and Huahong is not simply a contract manufacturing relationship. But rather a 'full replication of process' practice - the production line uses the same mask, equipment, and process parameters as European factories to ensure zero performance difference between Chinese production lines and overseas products.
Julian said that the cooperation between ST and Huahong began two or three years ago. ST had already arranged more than 100 factory experts to be stationed at Huahong Hongli two years ago, guiding them step by step to use the same equipment and production materials as ST factory, and strictly following ST's process specifications to produce ST's MCU. After long-term cooperation and communication, both parties have achieved sufficient guarantees for domestic customers in terms of production technology and supply strategies.
Julian emphasized that "the quality of wafers produced in European factories is the same as that of wafers produced in Huahong Hongli." This consistency includes chip specifications, electrical characteristics, product quality, reliability and the same part number. In other words, the ST chips purchased by customers in the domestic production line they cooperate with Huahong have the same quality as other global production lines.
Secondly, in terms of product supply, ST's dual supply chain value is not only in providing customers with products from Chinese origin, but also in providing customers with a more flexible global supply chain system. Julian further elaborated on the strategic idea of "dual supply chain", stating that ST has production capacity in different countries such as China, France, and South Korea. Some customers are very concerned about the wafer origin, and for these customers, ST will prioritize providing wafers from the required origin. For customers who do not have such requirements, ST will unify the global supply chain to meet customer needs.
This means that while ensuring that the quality of STM32 produced domestically is no different from products from other global origins, the domestic production line is a major extension of ST's global supply chain, which can better ensure that ST meets the needs of customers both domestically and internationally. For example, if the customer wants to export in the future, ST has STM32 produced on foreign production lines; If customers want to avoid some import issues, ST has domestically produced STM32.
This is the greatest value for customers of ST's "in China, for China" strategy, and it is also a supply chain advantage that other overseas chip manufacturers currently do not possess.
Julian also gave a candid response regarding the cost issue of domestic MCUs. Julian stated that reducing the localization cost of STM32 is not ST's top priority. ST's top priority is to prepare two sets of supply chains with consistent quality for Chinese customers in the current geopolitical uncertainty.
Silicon carbide 'Chongqing fortress': ST ambition under rare earth strategy
In addition to MCU, the progress of the Chongqing 8-inch SiC factory jointly built by ST and Sanan Optoelectronics has also attracted attention. This is another masterpiece of ST China's production line. This is not only the world's first joint venture project to mass produce silicon carbide devices in China, but also a key milestone for ST's layout in the field of silicon carbide in China.
On February 27th of this year, Sanan Optoelectronics and STMicroelectronics announced the official launch of the silicon carbide wafer fab jointly established by Sanan Optoelectronics and STMicroelectronics in Chongqing (Sanan Optoelectronics holds 51% of the shares and STMicroelectronics (China) Investment Co., Ltd. holds 49% of the shares). It is reported that this will become the first large-scale production line for 8-inch automotive grade silicon carbide power chips in China. After the project is fully operational, it can produce about 10000 automotive grade wafers per week.
Julian stated that the project will achieve mass production in the fourth quarter of this year. Similar to the Huahong project, ST has built a complete high-quality IDM localization chain in the field of silicon carbide. From substrate to wafer, and then to packaging, every link is closely interconnected: Sanan Optoelectronics' substrate factory provides high-quality raw material guarantee for this cooperative project, while in the wafer manufacturing process, ST strictly controls the production parameters to ensure the excellent performance of the wafers. The optimized design of the packaging process further enhances the reliability and integration of the product.
Through this complete chain, ST has achieved full process autonomy and controllability from raw materials to finished products, greatly improving the delivery speed and quality of products.
Due to considerations of supply chain security and cost optimization, international giants have accelerated the localization of SiC materials. ST's Chongqing project not only helps ST avoid potential risks brought by domestic rare earth export controls, but also greatly reduces SiC costs with the support of Sanan Optoelectronics' substrate factory, injecting strong momentum into ST's SiC devices in market competition. The ST project once again leads the industry and provides a successful example for the industry.
It is worth noting that with the gradual release of domestic production capacity by international giants such as ST, the supply of SiC market will continue to increase, and a price war may be imminent. For domestic manufacturers, this is both a challenging test and a rare opportunity.
Under the pressure of price wars, domestic manufacturers will have to accelerate the pace of technological research and development, improve product performance and quality, in order to stand out in the fierce market competition. At the same time, the decrease in prices will further expand the application scope of silicon carbide, providing a broader market space for domestic manufacturers and promoting their technological upgrading and industrial growth.
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