EU Approves €292.5 Mln To Support STMicroelectronics To Construct New Plant In Italy

(RTTNews) - The European Commission announced that it has approved, under EU State aid rules, a 292.5 million euros Italian measure to support STMicroelectronics (STM) in the construction of a plant in the semiconductor value chain in Catania, Sicily.

The measure made available through the Recovery and Resilience Facility or RRF is expected to strengthen Europe's semiconductors supply chain. This is in line with the ambitions set out in the European Chips Act Communication.

The measure would also contribute to achieving both the digital and green transition.

The measure notified by Italy will be funded by the RRF, following the Commission's positive assessment of Italy's Recovery and Resilience Plan and its adoption by the Council.

The EU said the aid will take the form of a 292.5 million euros direct grant to support STMicroelectronics' 730 million euros investment for the construction of a Silicon Carbide wafer plant in Catania.

The project is planned to be completed in 2026, and will be the first industrial scale, integrated epitaxy SiC wafers production line in Europe.

Under the measure, STMicroelectronics agreed to satisfy EU priority rated orders in the case of a supply shortage, invest in the development of next generation of microchips, and continue contributing to the strengthening of the European semiconductor ecosystem.