STI Breaks Ground on 2.6 Trillion Won Power Semiconductor Materials Base in China - thelec.net

STI has initiated construction of a power semiconductor materials production base in Guangzhou, China, with a total investment of approximately 2.6 trillion KRW (about 12.4 billion RMB). The project, ... Read original →

STI’s massive bet on AMB ceramic substrates targets a critical bottleneck in power module packaging. As the thermal backbone for SiC/GaN devices in EVs and smart grids, AMB performance directly dictates system reliability. This move pressures domestic DBC suppliers to accelerate upgrades while enabling tight co-design with VeriSilicon’s South China R&D hub—forging a localized ‘design-material-packaging’ loop. Yet reliance on Japanese or German AMB equipment exposes STI to export controls; any supply disruption could inflate operating costs by over 15%. Competitors like Rogers or Hitachi Metals may counter by expanding Southeast Asian capacity to sidestep China’s growing material dominance. Within 18 months, if China achieves >30% AMB self-sufficiency, global power module cost structures will shift, forcing IDMs to rethink localization strategies.