Boosting EU chip supplies, STMicroelectronics plans new plant in Italy, Reports Reuters
MILAN, Oct 5 (Reuters) – STMicroelectronics (ST) will build a 730 million euro ($728 million) silicon carbide wafer plant in Italy, the first such project approved as part of a European Union drive to bring more chip production closer to home.
As demand soars for chips used in everything from smartphones to cars, supply chain bottlenecks going on for almost two years have created havoc in several global industries, including automotive, healthcare and telecoms.
To boost production capacity in Europe, Brussels in February launched the so-called Chips Act, enabling 15 billion euros in additional public and private investment in the industry by 2030 on top of 30 billion euros of public investments already planned.
Franco-Italian ST (STM.BN) said the new integrated silicon carbide (SiC) substrate manufacturing facility would meet increasing demand from automotive and industrial customers amid a transition to electrification.