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EU approves Italian aid for $5.4 bln STMicro energy chip plant
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EU approves Italian aid for $5.4 bln STMicro energy chip plant
May 31, 2024 12:07 AM

CATANIA, Italy May 31 (Reuters) - The European

Commission on Friday approved Italian state aid for chipmaker

STMicroelectronics to build a 5 billion euro ($5.4

billion) plant in Catania, Sicily, to make specialist microchips

that boost energy efficiency in electric cars.

Having a large, integrated European plant making and

packaging the silicon carbide chips will have "wide positive

effects for the European semiconductor ecosystem" and help to

guarantee regional security of supply, a commission statement

said.

"The Catania campus will help reverse the tendency of

overreliance on imports of devices that are particularly

relevant for the European digital and green transition

objectives, the Commission said, approving 2 billion euros in

aid from Italy.

STMicro is the largest maker of silicon carbide chips, which

are more expensive to manufacture than regular silicon chips but

favoured by carmakers because they are energy-efficient,

lightweight and tough. STMicro's top customers include Tesla

, BYD, BMW and Renault.

($1 = 0.9241 euros)

(Reporting by Toby Sterling

Additional reporting by Diana Mandia and Tassilo Hummel

Editing by David Goodman

)

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