According to the Commission, the financial assistance will be in the form of direct grants to STMicroelectronics and GlobalFoundries to support their investments in the semiconductor manufacturing facility worth €7.4bn
ST and GF get French aid approved from EC for 300mm semiconductor facility in France. (Credit: GlobalFoundries Inc.)
The European Commission (EC) has approved a French aid measure to support STMicroelectronics (ST) and GlobalFoundries (GF) to build and operate a 300mm semiconductor manufacturing facility in France.
According to the Commission, the financial assistance will be in the form of direct grants to the companies to support their investments in the project worth €7.4bn.
STMicroelectronics and GlobalFoundries signed a memorandum of understanding (MoU) for the jointly-operated semiconductor fab in July 2022.
To be located near the existing 300mm facility of STMicroelectronics in Crolles, the new plant is expected to operate at full capacity by 2027.
The EC said that the project will allow the development of a large-scale manufacturing site in Europe for high-performance chips with a focus on fully depleted silicon on insulator (FD-SOI) technology.
Besides, the new facility is expected to mass produce energy-efficient and secure chips for key European markets including automotive, 5G/6G roll-out, security, industrial, defence, and space industries.
Based on technologies and production methods that are not yet available in Europe, the semiconductor plant is anticipated to produce 620,000 wafers of 300mm diameter annually.
The measure bolsters the goals outlined in the European Chips Act Communication by enhancing Europe’s supply security, resilience, and digital sovereignty in semiconductor technology.
The EC executive vice-president in charge of competition policy Margrethe Vestager said: “This measure approved today supports a unique cooperation between a semiconductor foundry and an integrated device manufacturer that will provide additional chip manufacturing capabilities in Europe and strengthen the semiconductors supply chain.
“The measure will ensure that the industry has a reliable source of power-efficient semiconductors for a range of applications. They are needed for electric vehicles, charging stations and other applications that play an important role in the green transition in Europe.
“The measure will also create high-skilled employment and development opportunities in Europe, while limiting possible distortions of competition.”