ST will invest 5 billion euros to establish a factory in Italy and receive a subsidy of 2 billion euros from the local government
STMicroelectronics (ST) recently announced plans to invest 5 billion euros (5.4 billion US dollars) to establish a chip and packaging manufacturing plant in Catania, Italy. This is a multi-year project, partially funded by the EU's Chip Act.
STMicroelectronics stated in a statement that the Italian government will provide 2 billion euros in subsidies to the company under the Chip Act policy. The company stated that the factory will specialize in the manufacturing, testing, and packaging of silicon carbide (SiC) and will begin production in 2026, with the goal of reaching full capacity production by 2033.
The EU Chip Act is one of a series of measures taken by global governments to stimulate local semiconductor production, due to supply chain disruptions and misjudgment of demand leading to shortages during the pandemic. The European Commission has proposed for the first time the € 43 billion Chip Act as part of the global goal of producing 20% of semiconductors by 2030.
This plan paves the way for the EU to invest billions of euros in chip research, and more importantly, allows countries to subsidize the production of "pioneering" chips. The European Union, along with the United States, Japan, and South Korea, is investing billions of euros in the domestic semiconductor industry to promote domestic chip manufacturing.
The EU Chip Act is one of a series of measures taken by global governments to stimulate local semiconductor production, due to supply chain disruptions and misjudgment of demand leading to shortages during the pandemic. The European Commission has proposed for the first time the € 43 billion Chip Act as part of the global goal of producing 20% of semiconductors by 2030.
This plan paves the way for the EU to invest billions of euros in chip research, and more importantly, allows countries to subsidize the production of "pioneering" chips. The European Union, along with the United States, Japan, and South Korea, is investing billions of euros in the domestic semiconductor industry to promote domestic chip manufacturing.