STMicroelectronics bags EUR 2bn of state aid for Italy plant
One of Europe's major chip makers, STMicroelectronics, is to build a new 200mm SiC manufacturing facility in Catania, Sicily. The plant will produce SiC semiconductor products for power devices and modules.
STMicroelectronics will invest EUR5 billion (USD 5.42 billion) in the project, which it describes as the first fully vertically integrated manufacturing facility for the mass production of SiC on one site. The new plant is set to start production in 2026, with full capacity targeted by 2033.
The Italian government will provide EUR2 billion for the project as part of the EU Chips Act. The European Commission approved the government grant, and said state aid is appropriate to ensure the resilience of Europe’s semiconductor supply chain and positive effects for the regional chip industry.
STMicroelectronics is one of Europe's leading chip players. The Geneva-headquartered firm, which counts Tesla, BMW, and Renault among its customers, says the new plant will be used for power devices and modules, as well as test and packaging, is part of its plan for integrated silicon-carbide capabilities from R&D to manufacturing, from substrate to module on one site. It will target automotive and industrial customers as they shift to electrification and higher energy efficiency.
“The fully integrated capabilities unlocked by the Silicon Carbide Campus in Catania will contribute significantly to ST’s SiC technology leadership for automotive and industrial customers through the next decades,” said Jean-Marc Chery, President and Chief Executive Officer of STMicroelectronics. “The scale and synergies offered by this project will enable us to better innovate with high-volume manufacturing capacity, to the benefit of our European and global customers as they transition to electrification and seek more energy efficient solutions to meet their decarbonisation goals.”
