EU approves Italian aid for $5.4 billion STMicro energy chip plant

FILE PHOTO: The logo of electronics and semiconductors manufacturer STMIcroelectronics is seen outside a company building in Montrouge, near Paris, France, July 12, 2022. REUTERS/Sarah Meyssonnier/File Photo

CATANIA, Italy (Reuters) -The European Commission on Friday approved Italian state aid for chipmaker STMicroelectronics to build a 5 billion euro ($5.4 billion) plant in Catania, Sicily, to make specialist microchips that boost energy efficiency in electric cars.

Having a large, integrated European plant making and packaging the silicon carbide chips will have "wide positive effects for the European semiconductor ecosystem" and help to guarantee regional security of supply, a commission statement said.