© Reuters. FILE PHOTO: A logo is pictured on the factory of STMicroelectronics in Plan-les-Oautes near Geneva, Switzerland, December 6, 2016. REUTERS/Denis Balibouse

(Reuters) – The European Commission on Wednesday approved Italian state aid for STMicroelectronics which plans to build a plant the company says will create around 700 jobs.

The Commission said it accepted a 292.5-million-euro ($292 million) Italian grant under the Recovery and Resilience Facility (‘RRF’) to support the building of the silicon carbide wafer plant in Catania, Sicily.

“The Italian measure approved today will strengthen Europe’s semiconductors supply chain, helping us deliver our green and digital transition,” European Commission Executive Vice-President Margrethe Vestager said in a statement.

“The measure will ensure that our industry has a reliable source of innovative substrates for power efficient chips.”

Vestager said the project will create high-skilled employment opportunities in Sicily, while limiting possible distortions of competition.

The aid will take the form of a direct grant to support the company’s 730 million euro investment, the Commission said.

($1=1.0028 euros)

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