The South Korean chipmaker STI has announced plans to spend 12.4 billion yuan (US$1.8 billion) on building a new power semiconductor facility in Guangzhou’s Baiyun District, industry media reports. The company currently supplies silicon carbide chip equipment and ceramic substrates to the likes of Samsung and SK Hynix.
The investment agreement was signed last week, less than two months after STI’s initial talks with municipal authorities in Guangzhou. It also follows a four-day state visit to China by South Korean President Lee Jae-myung in early January.
The money will be spent in phases, with the first being allocated 1.6 billion yuan (US$231 million) of the total sum. Construction is expected to start after Lunar New Year and operations should be running by the end of 2026, according to STI. Once fully operational, the facility is projected to generate around 3 billion yuan (US$433.8 million) annually.
[See more: Disagreements emerge over South Korea’s ‘world-first’ AI law]
The plant will initially focus on producing active metal brazed (AMB) ceramic substrates, a key material used in power semiconductor modules. Such components are widely used in electric vehicles (EVs), power grids and other applications requiring high-efficiency power control.
STI said its Guangzhou plant’s later phases would manufacture power semiconductor devices and automotive chips.
Baiyun District, the city’s largest by area, is positioned as a manufacturing and distribution hub for tech companies. It’s already home to a research lab operated by VeriSilicon, a domestic provider of custom chip design services and semiconductor IP.
