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STMicroelectronics and GlobalFoundries is a multi-billion-euro project that will receive significant government support in Europe in an effort to increase its independence in critical technologies by building a semiconductor manufacturing plant in France.
Ellis Palace said the joint venture between Swiss and US companies would be € 5.7bn, but declined to say how much public money would be allocated as details were still being finalized.
President Emmanuel Macron will visit the STMicroelectronics site where the plant will be built in southeastern France on Tuesday.
“This is the biggest industrial investment outside of the nuclear sector in recent decades and a major step forward for our industrial sovereignty,” French Finance Minister Bruno told Myre.
The project is the second in a series of 43 billion euros to benefit the EU’s chips industry, and is trying to catch smaller chips. Made almost entirely in Asia.
In March, Intel announced plans to build ደ 17bn infrastructure in Magdeburg, Germany and other European investments. The company is expected to receive billions in subsidies from the state and the European Union for the production of small chips, which are often used for high-performance computer equipment, servers and smartphones.
STMicroelectronics and GlobalFoundries manufactures chips of up to 18 nanometers for use in automobiles, factories and equipment. Since some electronics or computer manufacturers are based in the region, such chips are closely aligned with European industry needs.
In a joint statement, the companies said they would receive significant funding from France to be fully operational by 2026. Starting up to 1,000 jobs will be created in the STMicro site Crolls. It now has 6,000, and its production capacity will increase from 10,000 watts per week to 22,000.
France and Italy are the largest shareholders in STMicroelectronics, each with a 13.75 percent shareholding of 28 billion euros. GlobalFoundries is a manufacturer of $ 24 billion capitalization semiconductor contracts.
The announcement comes amid a global shortage of semiconductors during the Corona virus outbreak, which has hampered production in European automotive industry companies including Infinen and STMicroelectronics and caused temporary factory closures among Stellantis and Renault and others.
According to industry executives, the bottlenecks will continue in 2023 and 2024 or more.
The crisis has prompted European leaders, such as industry leader Taiwan’s semiconductor manufacturing company, to avoid relying too heavily on Asian chip products.
The Brussels-backed chips law is seen as an important step in the EU’s broader “strategic self-governance” agenda, which aims to reduce the continent’s chain of arms and geopolitical risks to supply.
The U.S. is working on a similar program to raise $ 52 billion in subsidy for chip production, but the bill has not been approved by Congress.
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