STMicroelectronics and GlobalFoundries announce new French site

Chipmaker STMicroelectronics and U.S. peer GlobalFoundries announced on Monday plans for a new site in France that they said would create around 1,000 new jobs and support European Union plans to develop more microchips.

The companies said the new French site would comprise a projected multi-billion-euro collaborative investment that included significant financial support from the French state.

President Emmanuel Macron is preparing to announce some 6.7 billion euros ($6.8 billion) worth of investments from major global companies at this week’s Choose France summit.

The partners did not disclose the amount of investment at the new site but Le Figaro newspaper earlier reported it would be nearly 4 billion euros.

They added that the new site, at Crolles near the Italian and Swiss borders, would contribute to a European Commission strategy for Europe to produce 20% of the world’s microchips by 2030. It would also help STMicroelectronics’ plans to raise its revenues to above the $20 billion level.

“This new manufacturing facility will support our $20 billion plus revenue ambition,” said Jean-Marc Chery, president and CEO of STMicroelectronics.

“We will have more capacity to support our European and global customers as they transition to digitalization and decarbonization,” he added.

Last month, Macron said he wanted Europe to have 10 tech giants in the next five years. In February, the European Union eased funding rules for innovative semiconductor plants to try to boost the EU’s own technology chip industry.