Sanan Joins Forces with STMicroelectronics as Silicon Carbide Chips Enter Mass Production
The Chongqing silicon carbide (SiC) chip project, a collaboration between Sanan Optoelectronics and STMicroelectronics, officially began mass production on March 30. SiC is a critical component for new energy vehicles (NEVs) and energy storage systems, making this development a significant signal for the entire industry.
The joint venture, launched in August 2023, represents a total investment of approximately 23 billion yuan. It aims to produce 480,000 8-inch silicon carbide wafers annually. Currently, Sanan's 8-inch SiC substrate production line in Chongqing has a weekly output of 500 wafers. Once fully operational, weekly production capacity will approach 10,000 wafers, meeting an estimated over 40% of domestic demand for automotive-grade SiC. For NEVs, SiC devices can improve driving range by more than 10% and enable faster charging.
In 2025, the global SiC power device market reached 2.83 billion yuan, and it is expected to grow to 3.88 billion yuan in 2026. Sanan's mass production will help ease domestic supply shortages, lower costs for downstream automakers, and ultimately make NEVs more affordable for consumers.
Challenges remain. International giants such as Infineon and Rohm still dominate the high-end market, and domestic companies must continue improving production yield and cost control. Sanan currently maintains a low debt-to-asset ratio (30–40%) and sound operations, but it must keep investing in R&D amid the growing trend of 12-inch SiC technology.
For average investors, it is wise to stay rational about this breakthrough. The semiconductor industry involves long investment cycles and high risks. Chasing hype blindly is not recommended. It may be more prudent to pay attention to other companies along the SiC supply chain, such as equipment maker Jingyuntian and materials supplier TankeBlue Semiconductor, which could offer more stable opportunities.
In summary, Sanan's mass production is not only its own breakthrough but also a symbol of the growing global presence of domestically made SiC devices, providing stronger support for new energy and smart manufacturing.