US-based semiconductor manufacturer GlobalFoundries and Franco-Italian chipmaker STMicroelectronics have announced plans to build a massive new chip factory in Grenoble, southeastern France. The investment amounts to around 5.7 billion euros, the two companies and the French government announced on Monday. About 1000 new jobs would be created.
STMicroelectronics already produces semiconductors at the Crolles site. According to the company, the new factory will mainly produce chips for car manufacturers, industry, the Internet of Things and communication networks. GlobalFoundries and STMicroelectronics receive “extensive government funding”.
Chip production in the EU is expanding
The new plant will make a “significant contribution” to the goals of the European Union’s Chips Act, the companies said. The EU Commission adopted the Chips Act at the beginning of February: it wants to stimulate the production of semiconductors in the EU and to mobilize around 43 billion euros from public and private funds for this. The goal is to locate one fifth of global semiconductor production in Europe by 2030.
In mid-March, krone.at announced that the American semiconductor company Intel had already announced the construction of two chip factories in Magdeburg. 17 billion euros must be invested. According to sources at the Ministry of Economic Affairs, the federal government is financing the project with billions.
Source: Krone
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