The American GlobalFoundries and the Franco-Italian STMicroelectronics have started talks with the aim of build a foundry on French territory. If it sees the light of day, this project will be supported by public funding made within the framework of the European Chips Act.
Soon an alliance between STMicroelectronics and GlobalFoundries?
The European giant STMicroelectronics intends to weigh in the future on the production of semiconductors in France and Europe. In 2021, the company has already contributed to the establishment of an alliance between manufacturers in the semiconductor industry. Large companies like NXP, Infineon, ASML and therefore STMicroelectronics have decided to join forces to accelerate the production of semiconductors within the European Union. This initiative has a specific objective: double the production of semiconductors by 2030 in Europe.
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It is in this context that STMicroelectronics could partner with GlobalFoundries to open a foundry in France. The two companies make no secret of this and clearly wish to benefit from the impetus given by the European Commission, which wishes “produce 20% of the chips in the world by 2030”. Today, the European Union is still too dependent on major international manufacturers, especially Taiwanese. The shortage we are currently going through is pushing our leaders to rethinking the industrial strategy of the Old Continent and therefore to invest.
In February 2022, the European Commission presented a €43 billion plan to support the industry: the European Chips Act. This roadmap provides in particular for an investment of 11 billion euros to support research on innovative chips. New production lines should see the light of day in Belgium, France and Germany. If the talks are successful, GlobalFoundries and STMicroelectronics could benefit from this momentum. The French factory could focus on the production of low-power chips with advanced technologies.
Europe wakes up
If an agreement is reached, this foundry will be the second to benefit from funding from the European Chips Act. Indeed, with its project in Germany, Intel is already benefiting from public funding from the European Union. The American giant plans to build a large state-of-the-art manufacturing site in the country and also plans to double its manufacturing space in Ireland. Asked by Bloomberga spokesperson for GlobalFoundries said the company is committed to “respond to the global shortage, in particular through co-investments”.
France and Germany are not the only countries to take up the subject. Spain also intends to do well in the semiconductor industry. Indeed, the Spanish Prime Minister, Pedro Sanchez, took advantage of the World Economic Forum which closed on May 26 in Davos, Switzerland, to reiterate his country’s ambitions in the sector. The peninsula has cleared a €12.25 billion investment plan which, in addition to strengthening the Spanish economy, will reduce Europe’s dependence on foreign suppliers.