EU Approves €450M Subsidy for Onsemi’s Silicon Carbide Expansion in Italy
- Dec 23, 2025
- 2 min read
The European Commission has approved a €450 million (approximately $490 million) Italian state aid measure to support onsemi in expanding its semiconductor manufacturing facility in Agrate Brianza, Italy. This significant investment is geared towards establishing a fully integrated manufacturing line for advanced Silicon Carbide (SiC) power semiconductors. Unlike traditional silicon, SiC chips are highly efficient at managing high voltages and temperatures, making them essential components for high-growth sectors including electric vehicles (EVs), fast-charging infrastructure, and renewable energy systems.
This approval marks another pivotal step in the European Union's broader strategy to achieve technological sovereignty and secure its supply chain for critical electronic components. By domesticating the production of these advanced materials, Europe aims to reduce its reliance on dominant Asian suppliers and insulate its key industries—particularly its massive automotive sector—from global supply shocks. The project will not only boost manufacturing capacity but also includes necessary research and development activities to advance SiC technology within the region.
The subsidy aligns directly with the objectives of the European Chips Act, which aims to double Europe's share of global semiconductor production to 20% by 2030. Margrethe Vestager, Executive Vice-President in charge of competition policy, noted that the investment would strengthen the European semiconductor value chain while ensuring that competition distortions remain limited. For onsemi, this expansion cements its role as a crucial player in the transition to electrification and sustainable energy infrastructure across the continent.
Sources:
European Commission Press Release State aid: Commission approves €450 million Italian measure to support onsemi's chip plant.
Reuters Italy gets EU nod for 450 mln euro aid to Onsemi chip plant.
Bloomberg Onsemi Gets EU Approval for €450 Million Italy Chip Subsidies.
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