The European Commission approved chip manufacturer STMicroelectronics on Friday to invest 5 billion euros (approximately 5.4 billion US dollars) in Catania, Sicily, with the support of the Italian government, to build a factory to produce specialized microchips for improving energy efficiency in electric vehicles.
The total investment of this project is 5 billion euros and it is planned to operate at full capacity by 2032.
A statement from the European Commission stated that having a large, integrated European factory producing and packaging silicon carbide chips will have a “broad positive impact on the European semiconductor ecosystem” and help ensure regional supply security.
The European Commission has stated that the Catania factory will help reverse the trend of excessive reliance on imported equipment, which is particularly relevant to Europe’s digital and green transformation goals, and has approved Italy’s 2 billion euro aid.
STMicroelectronics is the world’s largest manufacturer of silicon carbide chips. The manufacturing cost of silicon carbide chips is higher than that of ordinary silicon chips, but they are favored by automobile manufacturers due to their energy-saving, lightweight, and durability. The main customers of STMicroelectronics include Tesla, BYD, BMW YY, and Renault.