STMicroelectronics' New Microchip Plant in Sicily
The European Union has approved €2 billion in Italian government aid for STMicroelectronics to build a €5 billion microchip plant in Catania, on the island of Sicily. This investment is part of the EU's strategy to reduce dependence on Asian imports and strengthen its semiconductor supply chain.
A Strategic EU Move to Secure the Supply Chain The European Commission has given the green light for the Italian government's €2 billion aid package to STMicroelectronics for the construction of a new, state-of-the-art microchip plant in Catania. The €5 billion investment aims to bolster the semiconductor industry, contributing to increasing the EU's independence from Asian imports.
The Sicilian facility will focus on manufacturing energy-efficient silicon carbide (SiC) chips, which are in high demand among electric vehicle manufacturers. Production is planned to commence in 2026 and reach full capacity by 2033, producing 15,000 wafers per week.
The EU Chips Act, introduced to incentivize chipmakers to produce components vital for high-tech industries, aims to mobilize over €43 billion to increase the bloc's share of global semiconductor production from 10% to 20% by 2030. This measure is a response to Europe's dependence on Asian imports, recently highlighted by pandemic-related supply chain disruptions, growing trade tensions with China, and concerns over Red Sea trade routes. EU competition chief Margrethe Vestager emphasized the EU's commitment to ensuring a stable supply of these vital materials during a press conference in Catania.
Silicon carbide (SiC) based chips are made from a specific semiconductor material, silicon carbide. Silicon carbide is a wide-bandgap semiconductor material offering several advantages over traditional silicon-based semiconductors, especially in high-power and high-temperature applications.
Advantages:
High thermal conductivity: Silicon carbide is an excellent thermal conductor, allowing chips to manage heat more effectively, thereby improving device performance and reliability.
High electric field strength: Silicon carbide offers higher electric field strength, enabling chips to operate at higher voltages and better tolerate electrical stress.
Fast switching speed: SiC chips have faster switching speeds, improving energy efficiency and reducing switching losses.
Greater reliability: SiC-based chips offer longer lifespans and greater reliability, especially under extreme conditions.
Application Areas:
- Electric vehicles: In EVs, SiC chips can improve power conversion efficiency, reduce weight, and increase range.
- Renewable energy sources: In solar and wind energy systems, SiC chips can contribute to more efficient energy conversion and reduce energy losses.
- Industrial applications: In industrial motor control and energy management systems, SiC chips can increase system efficiency and reliability.
Silicon carbide chips are more energy-efficient and durable than traditional silicon-based ones. They are particularly popular in electric vehicles. As the largest manufacturer of silicon carbide chips, STMicroelectronics serves clients such as Tesla, BYD, BMW, and Renault. Despite volatility in demand for electric cars, the company is confident in the growing importance of silicon carbide chips.