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EU clears 2 billion Italian state aid for STMicroelectronics chip plant in Sicily

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The European Commission on May 31 approved Italian state aid measures worth 2 billion euros ($2.16 billion) to support chipmaker STMicroelectronics (NYSE: STM) set up a new semiconductor manufacturing facility in Catania, Sicily.

The aid will take the form of an approximately 2 billion euro direct grant to support an investment worth 5 billion euros in total, the EU Commission said in a statement.

STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, announces a new high-volume 200mm silicon carbide (“SiC”) manufacturing facility for power devices and modules, as well as test and packaging, to be built in Catania, Italy. Combined with the SiC substrate manufacturing facility being readied on the same site, these facilities will form ST’s Silicon Carbide Campus, realizing the Company’s vision of a fully vertically integrated manufacturing facility for the mass production of SiC on one site. The creation of the new Silicon Carbide Campus is a key milestone to support customers for SiC devices across automotive, industrial and cloud infrastructure applications, as they transition to electrification and seek higher efficiency.

The Silicon Carbide Campus will serve as the center of ST’s global SiC ecosystem, integrating all steps in the production flow, including SiC substrate development, epitaxial growth processes, 200mm front-end wafer fabrication and module back-end assembly, as well as process R&D, product design, advanced R&D labs for dies, power systems and modules, and full packaging capabilities. This will achieve a first of a kind in Europe for the mass production of 200mm SiC wafers with each step of the process – substrate, epitaxy & front-end, and back-end – using 200 mm technologies for enhanced yields and performances. The new facility is targeted to start production in 2026 and to ramp to full capacity by 2033, with up to 15,000 wafers per week at full build-out. 

About STMicroelectronics

At STMicroelectronics, we are over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world.

STMicroelectronics currently manufactures its flagship high-volume SiC products on two 150-millimeter wafer lines in Catania (Italy) and Ang Mo Kio (Singapore). A third hub is a joint venture with Sanan Optoelectronics, with a 200-millimeter facility under construction in Chongqing (China), dedicated to ST to serve the Chinese market. ST’s wafer production facilities are supported by automotive-qualified, high-volume assembly and test operations in Bouskoura (Morocco) and Shenzhen (China). SiC substrate R&D and industrialization is undertaken in Norrköping (Sweden) and Catania, where ST’s SiC substrates manufacturing facility is ramping up production and most of ST’s SiC product R&D and design staff are based.

Editor:Vicky

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