Tesla provider STMicroelectronics builds €5 billion chip manufacturing facility for electrical automobiles in Italy

STMicroelectronics has announced plans to build a massive factory in Italy to produce specialized microchips for electric vehicles and other high-voltage devices.

The Swiss company is the world's largest producer of silicon carbide microchips, which are particularly valued by car manufacturers for their light weight, energy efficiency and robustness. This results in electric vehicles that can travel further and are less prone to technical failures.

STMicroelectronics' new facility will specialize in the production of 200mm wafers. It will be located in Catania on the island of Sicily. Construction is expected to cost around 100,000 euros. 5 billion €.

The EU has agreed to cover 2 billion euros of the costs under the Chips lawThis groundbreaking law is mobilising more than 43 billion euros with the aim of increasing the bloc's share of global semiconductor production from 10 percent today to 20 percent by 2030.

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The new plant in Sicily will “strengthen the European semiconductor supply chain and ensure our access to a reliable source of energy-efficient chips,” said EU Competition Commissioner Margrethe Vestager.

STMicroelectronics — whose customers include Tesla, BMW and Renault — increased its production last year despite a generally Downturn in the semiconductor market.

The Swiss company already operates a 150mm wafer production facility in Catania, Italy. The new facility will be built next to it. The company is also currently building a new facility in China to serve the fast-growing Chinese electric vehicle market.

STMicroelectronics expects the new facility to begin production in 2026 and reach full capacity by 2033.At full speed, the production line can produce 15,000 wafers per week.