EU Approves €2.9 Billion Italian Support for STMicroelectronics Silicon Carbide Fab

Executive briefing: On December 6, 2023 the European Commission approved €2.9 billion in Italian state aid to support STMicroelectronics’ new silicon carbide (SiC) wafer and device manufacturing complex in Catania, Sicily. The project under the EU Chips Act will produce 200 mm SiC wafers and power modules critical for electric vehicles and industrial applications.

Key supply signals

• SiC capacity. The Catania site will ramp 200 mm wafer fabrication and module assembly, relieving supply constraints for EV inverters and grid-scale power electronics.
• Chips Act alignment. The aid is granted under the EU Chips Act framework, enabling rapid approval and aligning with Europe’s strategic autonomy goals.
• Innovation commitments. STMicroelectronics will invest in R&D and workforce training hubs to scale SiC expertise across Europe.

Control alignment

• Power electronics sourcing. Update procurement strategies for SiC devices supporting EV fleets, data centers, and grid infrastructure.
• Sustainability metrics. Integrate low-loss SiC components into decarbonization roadmaps and ESG reporting.
• Partner engagement. Coordinate with STMicroelectronics on qualification timelines and potential Chips Act co-funding opportunities.

Action checklist

• Engage Italian authorities and STMicroelectronics on supply agreements once construction milestones are finalised.
• Assess downstream facility upgrades required to integrate SiC modules into powertrain and industrial platforms.
• Monitor EU Chips Act reporting obligations tied to the aid package.

Sources

• European Commission — State Aid: Commission Approves €2.9 Billion Italian Support for STMicroelectronics (December 6, 2023)
• STMicroelectronics — ST to Expand Silicon Carbide Production in Catania

Zeph Tech integrates new SiC manufacturing capacity into electrification supply scenarios for clients.