French Government Subsidizes New Chip Factory of STMicroelectronics and GlobalFoundries with 2.9 Billion Euros

The French government has announced a subsidy of 2.9 billion euros for the construction of a new chip factory of STMicroelectronics and GlobalFoundries. The factory is located in Crolles near the city of Grenoble and will primarily produce 18 nm chips for the automotive industry and industrial IoT (IIoT) applications. The entire project is estimated to cost 7.5 billion euros and is expected to create a thousand jobs.

Part of Larger French Plan for Semiconductor Industry

The new chip factory 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 arrival of the factory should increase French chip production by 6 percent annually, which is approximately 620,000 wafers per year.
The French government is investing heavily in the semiconductor industry in order to create jobs and increase the competitiveness of the French economy. The new chip factory of STMicroelectronics and GlobalFoundries is a major step in this direction. The chip manufacturers are expected to start production in the new factory soon.