Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Boosting EU chip supplies, STMicroelectronics plans new plant in Italy

Published 05/10/2022, 07:42
Updated 05/10/2022, 14:25
© Reuters. FILE PHOTO: A logo is pictured on the factory of STMicroelectronics in Plan-les-Oautes near  Geneva, Switzerland, December 6, 2016. REUTERS/Denis Balibouse

© Reuters. FILE PHOTO: A logo is pictured on the factory of STMicroelectronics in Plan-les-Oautes near Geneva, Switzerland, December 6, 2016. REUTERS/Denis Balibouse

By Giulio Piovaccari

MILAN (Reuters) -STMicroelectronics (ST) will build a 730 million euro ($728 million) silicon carbide wafer plant in Italy, the first such project approved as part of a European Union drive to bring more chip production closer to home.

As demand soars for chips used in everything from smartphones to cars, supply chain bottlenecks going on for almost two years have created havoc in several global industries, including automotive, healthcare and telecoms.

To boost production capacity in Europe, Brussels in February launched the so-called Chips Act, enabling 15 billion euros in additional public and private investment in the industry by 2030 on top of 30 billion euros of public investments already planned.

Franco-Italian ST said the new integrated silicon carbide (SiC) substrate manufacturing facility would meet increasing demand from automotive and industrial customers amid a transition to electrification.

The five-year investment, due to be completed in 2026, will be supported with 292.5 million euros of public funds from Italy as part of the country's National Recovery and Resilience Plan, with the grant approved by the European Commission.

"The Italian measure approved today will strengthen Europe's semiconductors supply chain, helping us deliver our green and digital transition," European Commission Executive Vice-President Margrethe Vestager said in a separate statement.

"The measure will ensure that our industry has a reliable source of innovative substrates for power-efficient chips," she added, citing their use in electric vehicles and charging stations.

ST will build the new plant at its Catania site in eastern Sicily, alongside an existing SiC device manufacturing facility. It will create around 700 additional jobs in one of the poorer regions of the country.

© Reuters. FILE PHOTO: A logo is pictured on the factory of STMicroelectronics in Plan-les-Oautes near  Geneva, Switzerland, December 6, 2016. REUTERS/Denis Balibouse

Rival chipmaker Intel (NASDAQ:INTC) has also announced it will build a multi billion-euro chip factory in Italy and is in talks with Rome to strike a final deal on the investment, with a site in the wealthier north seen as most likely.

($1 = 1.0031 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.