Recently, it was reported that stmicroelectronics (ST) will build a silicon carbide fab worth 730 million euros (about 5.028 billion yuan) in Italy.

Previously, in order to increase production capacity in Europe, the European Union introduced the Chip Act in February, and the EU intends to use more than 43 billion euros of public and private funds to support chip production, pilot projects and start-ups. By increasing investment and strengthening research and development, we will expand the share of EU chip production capacity in the global market and prevent over-dependence on the international market.

St said the new integrated silicon carbide (SiC) substrate manufacturing facility will meet the growing needs of automotive and industrial customers during the transition to electrification. The five-year investment, which will be completed in 2026, will be supported by 292.5 million euros of public funds from Italy as part of the country's National Recovery and Rehabilitation plan and approved by the European Commission.

"The Italian measures approved today will strengthen Europe's semiconductor supply chain and help us achieve our green and digital transformation," European Commission Executive Vice President Margrethe Vestager said in a separate statement. "This measure will ensure that our industry has a reliable source of energy-efficient chip innovations (SiC) substrates," which will be widely used in electric vehicles and charging stations.

St will build the new facility at its Catania facility in eastern Sicily, Italy, alongside its existing SiC device manufacturing facility. It will create around 700 additional jobs in one of the poorer areas of the country.

Previously, ST in the second quarter earnings report is expected to 2022 ST silicon carbide business will receive $700 million in revenue, by 2023 will reach $1 billion. St is also a major supplier of Tesla's silicon carbide power modules.