STMicroelectronics has announced it will be investing €5 billion ($5.43bn) in building a high volume 200mm silicon carbide (SiC) chip manufacturing facility for power devices and modules, and test and packaging in Catania, Italy.
Of the total investment package, €2bn ($2.17bn) of the funding will be provided by the Italian government under the EU Chips Act.
The new production facility will sit alongside the company’s SiC substrate manufacturing plant which is already under construction at the site. The two complexes will form the ST Silicon Carbide Campus, which the company says will allow it to “realize its vision of a fully vertically integrated manufacturing facility for the mass production of SiC on one site.”
Silicon carbide is a synthetically produced crystalline compound of silicon and carbon. The material provides several advantages over conventional silicon for power applications, including better thermal conductivity, higher switching speeds, and lower dissipation, making it particularly suitable for the manufacturing of high-voltage power devices.
Silicon carbide wafer production emits over three times as much carbon dioxide as traditional silicon wafers, however, STMicroelectronics said that “sustainable practices are integral to the design, development, and operation of the Silicon Carbide Campus” and the company will be ensuring it oversees the responsible consumption of resources, including water and power.
Production at the site is expected to begin in 2026, ramping up to full capacity by 2033. STMicroelectronics said that at full build-out, the facility is expected to produce 15,000 wafers a week.
“The fully integrated capabilities unlocked by the Silicon Carbide Campus in Catania will contribute significantly to ST’s SiC technology leadership for automotive and industrial customers through the next decades,” said Jean-Marc Chery, president and CEO of STMicroelectronics.
He added: “The scale and synergies offered by this project will enable us to better innovate with high-volume manufacturing capacity, to the benefit of our European and global customers as they transition to electrification and seek more energy efficient solutions to meet their decarbonization goals.”
In April 2024, STMicroelectronics signed a 10-year power purchase agreement with Centrica Energy to supply solar energy to its semiconductor manufacturing sites in Agrate and Catania, Italy.
The PPA will kick off in 2025 and will aid in ST's aim of sourcing 100 percent of its energy from renewable sources by 2027.
