London, October 24th (Argus) - Semiconductor manufacturer STMicroelectronics stated that the optoelectronic chips used in data centers and electric vehicle suspension inverters will support the recent demand for silicon and silicon carbide.
In the third quarter, the company learned that there was an increase in the market demand for silicon photonic integrated circuit prototypes, which will be launched in its 300mm wafer manufacturing plant in the next quarter and beyond. STMicro's president and CEO, Jean-Marc Chery, said that as the capacity demand for artificial intelligence data centers increases, this confirms the company's expectation that photonic integrated circuits will become a driver of revenue growth.
STMicro reported that the demand for silicon and silicon carbide components for power and optical modules in AI servers continues to grow. The company is collaborating with artificial intelligence infrastructure leader NVIDIA to develop new architectures for 800V DC artificial intelligence data center equipment, using its power combination, to combine silicon carbide, gallium nitride, and silicon-based technologies in advanced custom designs at the semiconductor chip and packaging levels. However, the company is also developing its own gallium nitride-based prototype products, which are said to show an energy conversion efficiency of over 98% in tests.
In the electric vehicle sector, in addition to being used as traction inverters and on-board chargers, the company has also seen new applications of silicon carbide in full-active suspension inverters. There are also indications that the number of sensors is also increasing due to the adoption of advanced driver assistance systems.
However, there are unfavorable factors in the short term. STMicro has cut its capital expenditure budget for the remainder of this year. The company is reducing its capital expenditure for converting silicon carbide wafers from 150mm to 200mm wafers to cope with the decline in demand.
But STMicro stated that the company will continue to invest in the 300mm capacity expansion plan in its Agrate, Italy and Crolles, France factories, as the product demand for these factories remains strong.
STMicro expects that European and Chinese electric vehicles will start to grow in 2026, which will support the overall demand for silicon carbide compared to 2025. The strong contribution of the two regions' electrification plans as expected has not been achieved, especially when its major automotive customers have cut their purchases due to the decline in car demand.
The company has reduced its inventory this year because its customers have reduced order quantities and focused on reducing inventory, but it expects the replenishment inventory activities for silicon carbide to start in 2026.
