Chongqing - "The rapid development of China’s automotive electrification is driving a transformation in the semiconductor industry," said Zhao Mingyu, Vice President of China Region, Automotive Business Unit, STMicroelectronics at the China SAE Congress & Exhibition (SAECCE 2024) on November 13. 

In 2023, China produced over 30 million vehicles, including 9.6 million NEVs, with a penetration rate exceeding 35%. STMicroelectronics is advancing localization to strengthen semiconductor support for China’s NEV industry.

Zhao Mingyu, Vice President of China Region, Automotive Business Unit, STMicroelectronics. (Photo/SAECCE)

Zhao emphasized that Chinese automakers' demand for electronic architectures is increasingly divergent from European automakers'. While European carmakers still base their EV architectures on traditional internal combustion engine (ICE) vehicles, China’s shift to electrification and intelligence requires solutions with higher integration. 

For instance, Chinese automakers are transitioning from independent electric motor controllers to integrated multi-in-one products. Zhao stated, "We are seeing more and more domestic automakers developing multi-in-one motor controller solutions, ranging from three-in-one and four-in-one to seven-in-one and eight-in-one products. This trend is rare in the European market."

This shift in market demands presents both challenges and opportunities for STMicroelectronics. Zhao noted that the company is adjusting its product development strategy to meet the evolving needs of the Chinese market for higher integration and computing power. 

Zhao announced that STMicroelectronics, in partnership with Sanan Optoelectronics, will invest $3.2 billion to build an 8-inch silicon carbide (SiC) wafer plant in Chongqing, which will be ready for mass production by 2026.

"This investment is the largest wafer investment made by a foreign company in China in the past decade, and it will not only meet China's growing SiC demand but also adopt a fully localized process system," Zhao explained. This initiative aims to enhance supply chain resilience and significantly reduce manufacturing costs.

On-site at the China SAE Congress & Exhibition (SAECCE 2024). (Photo/SAECCE)

In addition to its focus on SiC products, Zhao highlighted that STMicroelectronics has also transferred the production of its 40-nanometer automotive-grade single-motor chips to China. "We are working with a well-known domestic foundry, and we plan to begin mass production of the 40-nanometer automotive-grade chips in the next two years," he noted. By 2026, STMicroelectronics aims for the majority of its automotive-grade products to be locally manufactured in China.

Zhao added, "Through a dual-supply model, STMicroelectronics can not only provide stable supply chain support to China's NEV industry but also offer flexible delivery solutions for domestic brands expanding into overseas markets." He further emphasized that the company will continue pushing for further localization and high-performance process integration, helping elevate China’s automotive industry’s innovation capacity and global competitiveness.