Stmicroelectronics To Construct $5b Silicon Carbide Plant In Italy

STMicroelectronics to Construct $5B Silicon Carbide Plant in Italy

European semiconductor company STMicroelectronics(NYSE:STM) is reportedly gearing up to open a new silicon carbide plant in Italy, with the initial investment worth some €5B, or $5.25B.

The French-Italian semiconductor company is currently discussing the project with Italian authorities and the European Commission, French business magazine L'Usine nouvelle reported.

The plant, which would be housed at STMicro's (STM) mega fab in Catania, Sicily, would expand beyond its 12,000 employees already in the country. Catania is one of STMicro's (STM) two sites in Italy, along with a site near Milan.

The company is hoping to gain a subsidy from Italy that would cover as much as 40% of the total cost, the news outlet added.

STMicro (STM) did not immediately respond to a request for comment.

In July, Europe finalized its own $47B Chips Act to better compete with the U.S. and Asia in the semiconductor industry. The legislation provides subsidies and €43B in public and private investment, including €3.3B from the EU's budget. The goal is to double the continent's global market share in semiconductors to at least 20% by 2030, up from 10% presently.

As STMicro is a French-Italian company with both governments as stakeholders, it has to invest in both France and Italy equally, a source familiar said.

STMicro (STM) is slated to double its position in silicon carbide next year in an effort to keep and grow its market share, with the proposed plant in Sicily slated to help with this initiative.

Silicon carbide is routinely used for semiconductors inside electric vehicles, as it allows for longer ranges and faster battery charging, but it's not without its challenges.

About STMicroelectronics

STMicroelectronics specializes in creating semiconductor solutions that are integrated into billions of electronic devices used by people all over the world. Their mission is to enhance people's lives by maximizing technology's potential. They are dedicated to driving innovation by building cutting-edge products, solutions, and ecosystems that enable smarter mobility, more efficient power and energy management, and the widespread deployment of the Internet of Things and connectivity technologies.

Key Facts

• Integrated device manufacturer with 14 main manufacturing sites

• President and CEO: Jean-Marc Chery

• Public since 1994: traded in New York, Paris, and Milan

• Corporate Headquarters: Geneva (CH)

• Committed to sustainability: Signatory of the United Nations Global Compact(UNGC), Member of the Responsible Business Alliance (RBA)

• Committed to be carbon neutral by 2027

Sales & Marketing

• $16.1 billion revenue in 2022

• 80 offices in 35 countries

• Over 200,000 customers worldwide PEOPLE & INNOVATION

• More than 50,000 employees worldwide