STMicroelectronics to build wafer factory in Italy

STMicroelectronics is going to build a new wafer factory in Italy. The factory will cost 730 million euros and should be ready in 2026. The plan is part of the European Chips Act to strengthen the chip sector in the region.

STMicro builds the wafer factory next to its existing factory in Catania. Silicon carbide substrates are made in the new building. These are particularly suitable for the automotive and energy industries, where there is a growing demand for such substrates. 150mm wafers are produced in the factory. In the future, STM wants to make wafers of 200mm. Production at the factory is to start in 2023. STMicroelectronics will invest a total of 730 million euros in the factory over the next five years. A third of that amount, 292.5 million euros, is subsidized by the Italian government.

The European Commission says that that plan and the grant have been approved as part of the European Chips Act. With this chip law, the European Union wants to strengthen its chip sector, among other things by allowing state aid under certain conditions for the construction of chip factories. “The Italian measures will strengthen Europe’s semiconductor supply chain and help us in the digital and green transition,” said European Commissioner Margrethe Vestager. Intel is also working under the Chips Act on chip factories in Germany and a chip packaging factory in Italy.