MILAN, Jan. 15 (Class Editori) - STMicroelectronics signed a multi-year agreement with ROHM, a Japanese enterprise specialized in semiconductors, for the supply of silicon carbide wafers by SiCrystal, a company which is part of the Kyoto group and owns an important share of the European market of these components.
As the company explained, the agreement provides for the supply of 150 mm silicon carbide wafers by SiCrystal to STM for a total value of 120 million dollars.
“This further long-term agreement for the supply of silicon carbide wafersgoes hand in hand with the external capacity we have already secured and the internal capacity we are currently developing. STM will be able to increase the volume and balance of the wafers supply we will need, in order to meet the great customer demand acceleration for automotive and industrial programs over the next years”, chairman and CEO of STM Jean-Marc Chery explained.
Milanofinanza.it recalls that this partnership has been reached two days after the bond target price increase by Citigroup, which last Monday raised the target price on STM from 17 to 26 Euros,confirming the neutral recommendation.
“We are now more optimisticaboutthe group key principles, thanks to a better performance, ashort-term context normalization and an interesting long-term positioning”, analysts explained.
The forecasts of earnings per share have grown by 3% for 2019, 6% for 2020 and 8% for 2021. The recommendation on STM is still neutral because of the bond evaluation, which has been characterized by a decrease of the historical discount in comparison to competitors, “Thanks to the recognition by the market of the improvement of the group’s key principles”, Citigroup affirmed. The data of the fourth quarter will be at disposal starting from next 23rd January.
At the beginning of December, STM acquired 100% of the Swedish enterprise Norstel Ab, a producer of silicon carbide wafers. The enterprise will be completely integrated in the R&D activities and global production of STM. It will continue to expand its production of raw and epitaxial 150 mm silicon carbide wafers, as well as the activities of R&D regarding the production of 200 mm wafers and of materials with a broad band gap. (All rights reserved)
(Source:Class Editori)
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