The Zhitong Finance App learned that ST Semiconductor (STM.US) announced on Friday that it plans to invest 5 billion euros (5.4 billion US dollars) to build a chip and package manufacturing plant in Catania, Italy. The project will last several years, with part of the funding provided by the European Union's “Chip Act”.

STMicroelectronics said that the Italian government will provide the company with a subsidy of 2 billion euros within the framework of the Chip Act. The new plant will specialize in silicon carbide manufacturing as well as testing and packaging, and production will begin in 2026, with the goal of reaching full capacity by 2033.

According to information, the EU finalized the 43 billion euro “Chip Act” last year as part of its ambitious goal of producing 20% of the world's semiconductors by 2030. The Chip Act allows EU countries to provide government funding for “first” semiconductors.

The EU, along with the US, Japan, and South Korea, is investing billions of dollars in the domestic semiconductor industry, especially as geopolitical tensions could disrupt the supply chain.

According to reports, the US introduced the “Chip and Science Act” in August 2022. The bill plans to provide $52.7 billion in funding for US chip research, development, manufacturing, and workforce development, and a 25% investment tax credit for the capital expenses of manufacturing chips and related equipment.

According to reports, since December 2023, the US has allocated about 29 billion US dollars to provide subsidies to manufacturers such as Samsung, TSM.US (TSM.US), Intel (INTC.US), and Micron (MU.US).