STMicroelectronics NV has finalized the acquisition of silicon carbide (SiC) wafer specialist Norstel AB after the Swiss headquartered electronics and semiconductor company exercised its option to acquire the remaining 45 percent stake. The total consideration for the acquisition of Norstel was US$137.5 million.

"At a time of constrained global capacity for silicon carbide, the full acquisition of Norstel will strengthen our internal SiC ecosystem: it will boost our flexibility, allow us to control better the improvement of yield and quality of the wafers, and support our long-term silicon carbide roadmap and business," said Jean-Marc Chery, President and Chief Executive Officer of STMicroelectronics. "This acquisition comes in addition to wafer supply agreements signed with third parties, with the overall goal to secure the required level of wafers to manufacture MOSFET and diodes for the automotive and industrial customer programs that will ramp up over the next years."

Norstel, which is based in Sweden, will be fully integrated into ST's global research and development (R&D) and manufacturing operations. It will continue growing its activities covering both the production of 150mm bare and epitaxial SiC wafers and R&D on 200mm production as well as, more broadly, on wide bandgap materials.