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Europe Greenlights €2bn Support for ST’s SiC Production Line

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May 31, 2024

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The European Commission has given the green light to a substantial €2 billion subsidy for the integrated 200mm silicon carbide plant being constructed by ST Microelectronics in Catania, Sicily. This significant investment is poised to have a transformative impact on the semiconductor industry in Europe.

The ST 200mm SiC high volume line in Catania, with a total cost of €5 billion, is set to be fully integrated from SiC materials to power chips and modules. The plant is scheduled to commence full production by 2033, aiming to churn out an impressive 15,000 wafers per week. This ambitious project follows the successful establishment of a pilot line just last year, showcasing ST Microelectronics' commitment to innovation and growth.

The funding agreement stipulates that ST must prioritize rated orders in the event of a supply shortage, in compliance with the EU Chips Act. Additionally, measures are in place to ensure that the project remains free from restrictions imposed by other countries, safeguarding its autonomy and operational efficiency.

The Silicon Carbide Campus in Catania is designed to streamline the entire production process, encompassing SiC substrate development, epitaxial growth processes, 200mm front-end wafer fabrication, module back-end assembly, as well as advanced R&D labs and packaging capabilities. This comprehensive approach marks a significant milestone in Europe's semiconductor landscape, enabling the mass production of 200mm SiC wafers with cutting-edge technologies for enhanced performance.

According to Jean-Marc Chery, President and CEO of STMicroelectronics, "The fully integrated capabilities offered by the Silicon Carbide Campus will solidify ST's leadership in SiC technology for automotive and industrial applications in the coming years. This project's scale and synergies will empower us to drive innovation with high-volume manufacturing capacity, benefiting our customers worldwide as they transition towards electrification and sustainable solutions."

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