ST starts construction of 300mm wafer fab

January 28, 2019 // By Peter Clarke
ST starts construction of 300mm wafer fab
European chip company STMicroelectronics NV (Geneva, Italy) has begun building a 300mm wafer fab for power technologies at its Agrate campus near Milan, Italy.

The revelation was made by ST CEO Jean-Marc Chery made during a conference call to discuss ST's fourth quarter 2018 results (see ST results provide upside surprise ), providing additional information around the company's plan for capital expenditure in 2019 of $1.2 billion to $1.3 billion.

Chery told analysts that part of the capex budget would be used to build a 300mm wafer fab in Agrate. "The construction work of the first stage to support R&D and first industrial deployment phase has already started, with the related building and facilities to be completed and ready to us some equipment for R&D in 2020," Chery said.

The wafer fab will start out as an R&D pilot line initially but be capable of expansion on demand.

Chery continued: "This new fab is designed to be expandable, of course, according to demand, to start volume production starting from 2021. It will be focused on supporting our growth ambitions and leadership in BCD, IGBT and power technologies."

The 2019 capex funds are also earmarked for the normal maintenance of established fabs, plant and infrastructure but Chery indicated two other strategic initiatives the money will support.

One is the expansion of installed capacity for silicon-carbide power semiconductor production and the ramp up of gallium-nitride production for RF. "Here, our early investments in wideband gap compounds have already resulted in more than $100 million of silicon-carbide revenues in 2018, and we have over 30 active silicon-carbide projects with many players around the globe, both in automotive and industrial applications," Chery commented. He added that the plan was for ST remain market leader in silicon-carbide and retain at least a 30 percent market share, which could be worth more than $3 billion in annual revenue by

The third leg of ST's strategic investments is in imaging sensor technologies where Chery said the investment would be used to for R&D efforts to improve the performance of sensors for

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