On Wednesday, China’s Sanan Optoelectronics and Europe’s STMicroelectronics signed an agreement to build a $3.2 billion semiconductor joint venture in Chongqing, supporting rising domestic demand for silicon carbide devices in the electric vehicle industry. Silicon carbide is a compound semiconductor which is used in EV’s critical power systems. EV makers including Tesla, BYD, and Nio all use silicon carbide devices in their vehicles. The Chongqing factory is set to complete construction in 2025 and is expected to produce 10,000 8-inch silicon carbide wafers per week at full production capacity by 2028. [Caixin, in Chinese]