European Union Approves $5.4 Billion for a Semiconductor Plant in Italy

The European Commission has approved massive Italian state aid for STMicroelectronics to construct a cutting-edge semiconductor plant in Italy. STMicroelectronics received USD 5.4 billion to develop the world's first fully integrated silicon carbide facility in Catania, Sicily. Furthermore, the facility is anticipated to start production in 2026 and ramp to full capacity by 2033, with up to 15,000 wafers per week at full build-out. 

Catalania SiC faciility: Render

The new facility will produce high-volume 200-mm silicon carbide for power devices and modules and test and package them. The Silicon Carbide Campus will have vertically integrated SiC capabilities from research and development to manufacturing, from substrate to module.

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ST currently manufactures SiC products on two 150-millimeter semiconductor fabs around the world. A third hub is a joint venture with Sanan Optoelectronics, with a 200-millimeter semiconductor facility under construction in China. 

“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.

What is Silicon Carbide?

Silicon carbide (“SiC”) is a key compound material consisting of silicon and carbon that offers several advantages over conventional silicon for power applications. The wide bandgap of SiC and its unique characteristics, like better thermal conductivity, higher switching speed, and low dissipation, make it particularly suitable for the manufacturing of high-voltage power devices (notably above 1,200 volts).

SiC power devices are especially useful in electric vehicles, fast-charging infrastructure, renewable energies, and various industrial applications, including data centers, as they offer higher electric currents and lower leakage than traditional silicon semiconductors, increasing energy efficiency. SiC chips are, however, more difficult and costly to manufacture than silicon chips, with many challenges to overcome in the industrialization of the manufacturing process.

About STMicroelectronics

STMicroelectronics is a global semiconductor company that is pivotal in the global semiconductor market. With over 50,000 employees, including over 9,500 in R&D, STMicroelectronics serves over 200,000 customers worldwide. The company's innovations are integral to the technology that shapes our modern world, with their microchips embedded in many advanced applications.

The company stands out for its commitment to creating semiconductor technologies that foster a smarter, greener, and more sustainable future. This ethos is reflected in their product development, which focuses on addressing environmental and social challenges through technology. STMicroelectronics' approach to innovation is collaborative, involving employees, customers, and partners in designing and constructing products, solutions, and ecosystems that contribute to sustainability.

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