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
)