STMicroelectronics and Geely Auto Forge Long-Term Silicon Carbide Supply Agreement

STMicroelectronics (NYSE: STM) and Geely Auto Group (HKEX: 0175) have entered into a long-term Silicon Carbide (SiC) supply agreement, aiming to accelerate Geely's New Energy Vehicle (NEV) transformation strategy. The multi-year contract will see STMicroelectronics providing SiC power devices for Geely's mid-to-high-end battery electric vehicles (BEVs), enhancing performance, charging speeds, and driving range.

In addition to the supply agreement, the companies have established a joint lab to exchange information and explore innovative solutions related to automotive Electronics/Electrical (E/E) architectures, advanced driver assistance (ADAS), and NEVs. This collaboration is expected to deepen their cooperation and accelerate the development and implementation of innovative technologies in Geely Auto.

Geely Auto Group has adopted STMicroelectronics' third-generation SiC MOSFET devices in electric traction inverters, which maximize efficiency and enable superior electric vehicle performance. The adoption of these advanced devices is a significant step in boosting Geely Auto's NEV transformation strategy.

This partnership has significant implications for the electric vehicle industry, as it accelerates the development and implementation of innovative technologies. The widespread adoption of silicon carbide technology could lead to faster charging times, improved performance, and increased driving ranges, contributing to a more sustainable transportation sector.

Li Chuanhai, President of the Electronic and Electrical Center of Geely Automotive Central Research Institute, expressed his optimism about the partnership, stating, "We are very pleased to establish a win-win cooperation with STMicroelectronics to empower each other and fully utilize our respective advantages and resources." He further added, "I believe that through the form of innovation joint lab, Geely and ST can deepen our cooperation, achieve mutual benefit, and accelerate the development and implementation of innovative technologies in Geely Auto."

Henry Cao, Executive Vice President of Sales & Marketing, China Region, STMicroelectronics, also commented on the agreement, *"This long-term SiC supply agreement and the joint lab establishment herald a major milestone in our long-established cooperation. "*

Geely Auto, founded in 1986, is a leading global automobile manufacturer and China's top automotive brand. In 2023, the company sold a total of 1.68 million vehicles, with NEV sales reaching 480,000 units, accounting for 28% of the company's total sales. Geely aims to become a globally competitive and influential smart electric mobility technology enterprise and energy service provider.

STMicroelectronics is a global semiconductor leader with a state-of-the-art SiC manufacturing process and a completely vertically integrated supply chain. The company provides SiC devices for a wide range of EV applications, including traction inverters, onboard chargers (OBC), DC-DC converters, EV charging stations, and e-compressor applications.

In June 2023, STMicroelectronics and Sanan Optoelectronics announced the creation of a new 200mm SiC device manufacturing joint venture in Chongqing, China, to better support the needs of Chinese customers.

The partnership between STMicroelectronics and Geely Auto is set to accelerate the development and implementation of innovative technologies in the automotive industry, reinforcing Geely's position as a key player in the global NEV market.

Key Takeaways

• STMicroelectronics and Geely Auto Group sign long-term SiC supply agreement.
• Agreement aims to accelerate Geely's New Energy Vehicle transformation strategy.
• Joint lab established to explore innovative solutions for automotive E/E architectures.
• SiC technology adoption expected to improve EV performance, charging speeds, and driving range.
• Partnership to accelerate development and implementation of innovative technologies in automotive industry.