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STMicro to set up new fab in Italy
While discussing the semiconductor manufacturers fiscal report president and CEO, Jean-Marc Chery, disclosed that the company is planning a new 300mm fab in Agrate, Italy.
"For 2019 our key objectives are to continue outperforming our served market, to balance our end market and application focus and to execute on our strategic technology, R&D and manufacturing programs. Therefore, we expect to invest between $1.2 to $1.3 billion in CAPEX," Jean-Marc Chery said in the company’s fiscal report. He detailed this further in his speech during the presentation saying that this amount includes the maintenance of the company’s manufacturing fabs and R&D; but also capacity addition in some of its existing technologies. However, part of this CAPEX is also devoted to support three strategic initiatives the company has set up. Firstly, a new 300mm fab in Agrate, Italy (near Milan). The construction work of the first stage – to support R&D and first industrial deployment phase – has already started. STMicroelectronics expects the new site to be completed and ready to host some equipment for R&D in 2020. The company is setting up this new fab to be expandable, of course according to demand, and will start volume production from 2021. It will be focused on BCD, IGBT and Power technologies. Secondly, the expansion of the company’s installed capacity for Silicon Carbide and the start of production ramp-up for Gallium Nitride for RF devices. “Here, our early investments in wideband gap compounds have already resulted in over $100 million of Silicon Carbide revenues in 2018, and we have over 30 active Silicon Carbide projects with many players around the globe, both in Automotive and Industrial applications. Also, earlier this month we announced a multi-year supply agreement with Cree,” the Chery said. These investments are aimed at supporting the company’s goal to sustaining an signifigant share –about 30% – of the Silicon Carbide market, which is estimated to be over USD 3 billion in 2025. Thirdly, the company is earmarking part of the CAPEX to investments in the next generation of imaging sensor technologies. As of now, no further details regarding the new Fab in Agrate has been disclosed.
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