The Jeuns

Plans Revealed for €5bn Chip Plant in Italy

May 31, 2024 | by The Jeuns

STMicroelectronics, a leading semiconductor giant and key Apple supplier based in Europe, recently announced their plans to construct the world’s first fully integrated silicon carbide (SiC) facility in Italy. This ambitious project will require a total investment of €5 billion and will be located in Catania.

The new high-volume 200mm SiC manufacturing facility will offer numerous advantages over conventional silicon for power applications. These benefits include improved thermal conductivity, higher switching speed, and lower dissipation. STMicroelectronics shared that the plant will be utilized for producing power devices and modules, as well as for testing and packaging purposes. This initiative aligns with the company’s strategy to establish fully vertically integrated SiC capabilities, from research and development to manufacturing, all on one site. This integrated approach will cater to automotive and industrial customers as they transition towards electrification and boost energy efficiency.

CEO and President of STMicroelectronics, Jean-Marc Chery, expressed his enthusiasm for the new campus, highlighting its potential to bolster the company’s SiC technology leadership for automotive and industrial sectors in the coming decades. The facility is slated to commence production in 2026 and is expected to reach full capacity by 2033, producing an estimated 15,000 wafers per week.

The €5 billion investment for this state-of-the-art facility receives substantial support from the Italian government, in line with the EU Chips Act. This strategic collaboration is aimed at fostering innovation in high-volume manufacturing capacity and catering to the evolving needs of customers worldwide who are transitioning towards electrification and pursuing energy-efficient solutions to meet decarbonization targets.

STMicroelectronics’ shares experienced a slight decline of 0.3% to €37.69 in Paris following the announcement. Despite this minor dip, the company remains optimistic about the long-term benefits and advancements that the SiC facility will bring to the industry.

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