French Government Subsidizes New Chip Factory of STMicroelectronics and GlobalFoundries

The French government is investing heavily in the semiconductor industry with a 2.9 billion euro subsidy for a new chip factory of STMicroelectronics and GlobalFoundries. The factory is located in Crolles near the city of Grenoble and is expected to create a thousand jobs. The entire construction of the plant, including the subsidy, will cost 7.5 billion euros.
The chips produced in the new factory are primarily intended for the automotive industry, but also industrial IoT (IIoT) applications. It mainly concerns 18 nm chips, with production expected to increase French chip production by 6 percent annually, or approximately 620,000 wafers per year.

Part of Larger Chip Program

The project is one of the largest French industrial projects ever and is part of a larger French development program for the semiconductor industry. This project, which is part of the Chips Act of the EU, is financed with 5.5 billion by the French state.
The French government is investing heavily in the semiconductor industry in order to remain competitive in the global market. The new chip factory of STMicroelectronics and GlobalFoundries is part of a larger French development program for the semiconductor industry, and is expected to create a thousand jobs and increase French chip production by 6 percent annually. The project is part of the Chips Act of the EU and is financed with 5.5 billion by the French state.