On June 5th, 2023, France announced its commitment to providing 2.9 billion euros ($3.10 billion) in state aid to support a significant investment by chipmakers STMicroelectronics and GlobalFoundries. The investment amounts to 7.5 billion euros and aims to establish a semiconductor factory in Crolles, southeastern France.
During a joint press conference at the Ministry of Finance, Finance Minister Bruno Le Maire emphasized the magnitude of the investment, describing it as substantial and massive. He stated that the 2.9 billion euros allocated for this project are part of France’s larger investment plan of 5.5 billion euros dedicated to the microchip sector by 2030.
The move by France aligns with similar efforts by the United States and the European Union to reduce dependence on Asian suppliers. Both regions are providing substantial state subsidies to encourage the establishment of domestic chip factories. In April 2023, the EU agreed upon the Chips Act, which aims to double its global chip market share to 20% by 2030. This legislation follows the U.S. CHIPS for America Act.
STMicroelectronics and GlobalFoundries obtained EU approval on April 28th, enabling them to proceed with the construction of the Crolles chip factory with the support of French state aid. The new facility, planned next to STMicroelectronics’ existing plant in Crolles, targets full operational capacity by 2028. It is expected to produce up to 620,000 wafers per year, sized at 18-nanometers, which are essential components for applications in the automotive, internet-of-things, and mobile sectors. The establishment of the factory is also anticipated to create approximately 1,000 new job opportunities.
As part of its broader strategy, France aims to generate a total of 10,000 new jobs in the semiconductor industry by 2030.
(Exchange rate: $1 = 0.9352 euros)
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