The European Commission approved Italian state aid for STMicroelectronics, which plans to build a plant that the company says will create around 700 jobs.
The Commission accepted a 292.5 million-euro $292 million Italian grant under the Recovery and Resilience Facility 'RRF to support the construction of the silicon carbide wafer plant in Catania, Sicily.
The Italian measure approved today will strengthen Europe's semiconductor supply chain, helping us deliver our green and digital transition, European Commission Executive Vice-President Margrethe Vestager said in a statement.
Our industry will have a reliable source of innovative substrates for power efficient chips, as a result of the measure. Vestager said the project will create high-skilled employment opportunities in Sicily while limiting possible distortions of competition.
The Commission said that the aid would be a direct grant to support the company's 730 million euro investment.