STMicroelectronics unveils plans for €5bn chip plant in Italy

31st May 2024 11:32

(Sharecast News) - Europe semiconductor giant and Apple supplier STMicroelectronics on Friday announced plans to build the world first fully integrated silicon carbide (SiC) facility in Italy, requiring a total investment of €5bn.

The Geneva-headquartered firm, which is listed in Paris, Milan and New York, said the new high-volume 200mm SiC manufacturing facility will be built in Catania.

The build will require €5bn of investment, including €2bn support provided by the Italian government as part of the EU Chips Act.

SiC offers several advantages over conventional silicon for power applications. such as better thermal conductivity, higher switching speed and low dissipation, STMicroelectronics said.

The company said the plant, which will be used for power devices and modules, as well as test and packaging, is part of its plan for "fully vertically integrated SiC capabilities from R&D to manufacturing, from substrate to module, on one site, enabling automotive and industrial customers in their shift to electrification and higher energy efficiency".

Chief executive and president Jean-Marc Chery said the new campus will "contribute significantly to ST's SiC technology leadership for automotive and industrial customers through the next decades".

Production at the new facility is expected to start in 2026 and ramp up to full capacity by 2033, by which time STMicroelectronics expects to produce 15,000 wafers per week.

"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."

STMicroelectronics were down 0.3% at €37.69 by 1225 in Paris.