STMicroelectronics to Build $5.4 Billion Chip Plant in Italy With State Support

By Adria Calatayud

STMicroelectronics plans a 5-billion euro ($5.42 billion) investment in a chip-manufacturing plant in Italy with state support.

The European chip maker said Friday that the plant will be located in Catania, Sicily, and that it will produce silicon-carbide semiconductor products for power devices and modules.

The total EUR5 billion investment projected for the plant includes EUR2 billion in state support provided by Italy, the company said.

STMicroelectronics expects the new facility to start production in 2026, with full capacity targeted by 2033.

European Union antitrust authorities separately said Friday that they approved Italy's aid package in the form of a direct grant of about EUR2 billion to support STMicroelectronics in the construction of the plant.

The European Commission--the EU's executive arm and antitrust enforcer--said the Italian aid is necessary and appropriate to ensure the resilience of Europe's semiconductor supply chain and has wide positive effects for the regional chip industry.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

May 31, 2024 02:46 ET (06:46 GMT)

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