STMicroelectronics N.V. announced on Wednesday that it would establish a €730 million facility in Italy to help ease the global shortage of semiconductor chips.

The Dutch tech giant said the plant would be completed by 2026 with the support of €292.5 million from Italy's recovery funds granted by the European Union. STMicro decided to build a plant in Sicily and create 700 new jobs in the process, with the production expected to start as soon as next year.

"This new facility will be key to our vertical integration in SiC (device manufacturing plant)... as we further ramp up volumes to support our automotive and industrial customers in their shift to electrification and higher efficiency," Chief Executive Jean-Marc Chery noted.