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STMicroelectronics to buy stake in Norstel
Posted on Thursday, 07 February 2019 15:09
STMicroelectronics is snapping up a 55.0 per cent stake in Sweden’s silicon carbide (SiC) wafer manufacturing company Norstel. Under the terms of the deal, the buyer has the option to purchase the remaining 45.0 per cent of the business, which if exercised, represents a total consideration of USD 137.50 million. Jean-Marc Cherry, chief executive of STMicroelectronics, said: “The acquisition [. . .] will boost our flexibility, improve yield and quality, and support our long-term silicon carbide roadmap and business.” Headquartered in Norrkoping, Norstel researches, develops and produces SiC substrates for high performance semiconductors. The company uses high temperature chemical vapor deposition (HTCVD) and seeded sublimation processes to grow SiC crystals at over 2,000 degrees and produce semi-insulating wafers and n-type wafers for power devices, respectively. Norstel’s products claim to outperform other semiconductor materials due to higher band-gap energy, a higher radiation tolerance and a larger power capacity in its electronic systems that have lower life-cycle costs. According to Zephyr, the M&A database published by Bureau van Dijk, there were 2,367 deals targeting semiconductor and other electronic component manufacturers announced worldwide in 2018. In the largest of these, Microchip Technology bought US-based integrated circuits manufacturer Microsemi for USD 10.15 billion. Other companies targeted in this sector last year include, Hanergy Thin Film Power, Integrated Device Technology, Renesas Electronics and Semiconductor Manufacturing South China. STMicroelectronics claims to be one of the largest semiconductor businesses in the world, with 46,000 employees and over 1000,000 customers. The buyer’s products can be found in advanced driver assistance systems, which features vision, radar, imaging and sensors and adaptive lighting systems to ensure safe driving. For the financial year ended 31st December 2018, the company posted revenue of USD 9.66 billion, up from USD 8.35 billion in the corresponding period of 2017. © Zephus Ltd