STMicroelectronics to build integrated Silicon Carbide substrate manufacturing facility in Italy

Rhea-AI Summary

STMicroelectronics announced plans to build the first integrated Silicon Carbide (SiC) substrate manufacturing facility in Europe, located in Catania, Italy. This facility aims to meet the rising demand for SiC devices in automotive and industrial sectors as companies transition to electrification. The investment of €730 million over five years, supported by the Italian government, will create around 700 jobs. Production is expected to start in 2023, enhancing ST’s vertical integration strategy and supporting its goal of 40% internal substrate sourcing by 2024.

Positive

• Investment of €730 million to enhance SiC substrate production capacity.
• Creation of approximately 700 jobs in Italy.
• Facilities will enable integration of all production steps for 150mm SiC substrates.
• Supports ST's target of 40% internal substrate sourcing by 2024.

Negative

• None.

STMicroelectronics to build integrated Silicon Carbide substrate manufacturing facility in Italy

• First-of-a-kind SiC epitaxial substrate manufacturing facility in Europe
• Full vertical integration to reinforce substrate supply for SiC devices and solutions enabling automotive and industrial customers in their shift to electrification and higher efficiency

Geneva, Switzerland, October 5, 2022 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, will build an integrated Silicon Carbide (SiC) substrate manufacturing facility in Italy to support the increasing demand from ST’s customers for SiC devices across automotive and industrial applications as they transition to electrification and seek higher efficiency. Production is expected to start in 2023, enabling a balanced supply of SiC substrate between internal and merchant supply.

The SiC substrate manufacturing facility, built at ST’s Catania site in Italy alongside the existing SiC device manufacturing facility, will be a first of a kind in Europe for the production in volume of 150mm SiC epitaxial substrates, integrating all steps in the production flow. ST is committed to develop 200mm wafers in the next future.

This project is a key step in advancing ST’s vertical integration strategy for its SiC business. The investment of €730 million over five years will be supported financially by the State of Italy in the framework of the National Recovery and Resilience Plan and it will create around 700 direct additional jobs at full build-out.

“ST is transforming its global manufacturing operations, with additional capacity in 300mm manufacturing and a strong focus on wide bandgap semiconductors to support its $20+B revenue ambition. We are expanding our operations in Catania, the center of our power semiconductor expertise and where we already have integrated research, development and manufacturing of SiC with strong collaboration with Italian research entities, universities and suppliers” said Jean-Marc Chery, President and Chief Executive Officer of STMicroelectronics. “This new facility will be key to our vertical integration in SiC, reinforcing our SiC substrate supply as we further ramp up volumes to support our automotive and industrial customers in their shift to electrification and higher efficiency”.  

ST’s leadership in SiC is the result of 25 years of focus and commitment in R&D with a large portfolio of key patents. Catania has long been an important site for innovation for ST as the home of the largest SiC R&D and manufacturing operations, successfully contributing to the development of new solutions for producing more and better SiC devices. With an established eco-system on power electronics, including a long-term, successful collaboration between ST and different stakeholders (the University, the CNR -Italian National Research Council-, companies involved in equipment and product manufacturing) as well as a large network of suppliers, this investment will strengthen Catania’s role as a global competence center for Silicon Carbide technology and for further growth opportunities.

ST’s leading-edge, high-volume STPOWER SiC products are currently manufactured in its fabs in Catania and Ang Mo Kio (Singapore). Assembly and test are done at back-end sites in Shenzhen (China) and Bouskoura (Morocco). The investment in this SiC substrate manufacturing facility builds on this expertise and is a significant milestone on ST’s path towards reaching 40% internal substrate sourcing by 2024.

About STMicroelectronics
At ST, we are 48,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and connectivity. ST is committed to becoming carbon neutral by 2027. Further information can be found at www.st.com.

For further information, please contact:

INVESTOR RELATIONS
Celine Berthier
Group VP, Investor Relations
Tel +41 22 929 58 12
celine.berthier@st.com 

MEDIA RELATIONS
Alexis Breton
Corporate External Communications
Tel +336 5916 7908
alexis.breton@st.com 

Attachment

• C3124C - Catania SiC substrates press release

FAQ

What is STMicroelectronics planning to build in Italy?

STMicroelectronics is planning to build an integrated Silicon Carbide substrate manufacturing facility in Catania, Italy.

How much is STMicroelectronics investing in the new facility?

STMicroelectronics is investing €730 million over five years for the new facility.

When is production expected to start at the new SiC facility?

Production at the new SiC facility is expected to start in 2023.

What are the expected job opportunities from this new facility?

The new facility is expected to create around 700 direct additional jobs.

How does the new facility impact STMicroelectronics' vertical integration strategy?

The new facility will enhance ST's vertical integration strategy by reinforcing SiC substrate supply as it ramps up production volumes.