Chipmakers STMicroelectronics and GlobalFoundries have been granted permission by the European Commission to develop a new chip factory in France with French government support. The move is expected to improve the security of supply, resilience, and production of semiconductor technology in Europe.
The aid will take the form of direct grants to the companies, amounting to 7.4 billion euros. The project is expected to be running at full capacity by 2027.
The companies announced their intention to build the new facility in June, next to STM’s current location in Crolles. The facility is expected to produce up to 620,000 18-nanometer wafers per year.
The technology developed in Europe is significantly more energy-efficient than currently available alternatives, and the project will enable mass production of energy-efficient and safe processors. This is important for electric vehicles, charging stations, and other applications that are essential for the green transition in Europe.
The measure is also expected to create highly skilled employment and development opportunities in Europe, while limiting possible distortions of competition.
The US and the EU have both invested billions in government grants to promote domestic chip manufacturing and reduce dependence on Asian suppliers, in order to alleviate the global chip shortage facing automakers.
