EU approves €292.5m Italian RRF grant for STMicroelectronics' Catania SiC wafer plant

Key highlights
  • €292.5m RRF grant supports STMicroelectronics' €730m investment to build a Silicon Carbide (SiC) wafer and epitaxial (epiwafer) plant in Catania, Sicily.
  • Project is planned to be completed in 2026 and will be the first industrial-scale integrated SiC epitaxy production line in Europe, covering SiC powder to epiwafers.
  • STMicroelectronics agreed to satisfy EU priority orders in case of shortages, invest in next-generation chips, and share potential excess profits with Italy.

Overview

The European Commission approved a €292.5 million Italian measure, financed via the Recovery and Resilience Facility, to support STMicroelectronics' €730 million investment in a Silicon Carbide (SiC) wafer and epitaxial plant in Catania, Sicily.

Project details

The facility will integrate the full SiC substrate value chain—from SiC powder to epitaxial (epiwafer) production—becoming the first industrial-scale integrated SiC epitaxy line in Europe, with completion planned in 2026; SiC wafers target high-performance power devices for EVs, fast charging, renewables and industrial applications.

Conditions and commitments

STMicroelectronics committed to satisfy EU priority-rated orders in case of supply shortages, to invest in next-generation microchips, to strengthen the European semiconductor ecosystem and to share potential excess profits above current expectations with Italy.

Commission assessment and background

The measure was assessed under Article 107(3)(c) TFEU and the European Chips Act principles; the Commission found it facilitates development, has an incentive effect, is first-of-a-kind in Europe, and is necessary, proportionate and limited to the minimum needed based on a proven funding gap; the non-confidential decision will be published under case SA.103083.