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Home > Industry News

France Provides €2.9 Billion in Financial Support for New Fabs by STMicroelectronics and Microchip

Views : 37
Update time : 2023-06-08 10:51:27
        The French government announced on May 5 that it will provide 2.9 billion euros in public support for a new FD-SOI process technology-based semiconductor factory project in southeastern France by STMicroelectronics and Ge-Core.
 
 
        The French Ministry of Economy, Finance and Industry, Digital Sovereignty said in a communiqué that the project, with a total investment of nearly 7.5 billion euros, is part of the "France 2030" investment plan and part of the EU's "Chip Act," with the goal of increasing France's chip production capacity to 620,000 wafers per year by 2028, making the European production capacity of all technology nodes in the existing Nearly 6% on top of the existing, etching fineness of 20 nanometers to 65 nanometers of European production capacity increased by 41%. 
        The 2.9 billion euro state aid is one of the most important French aid to fabs since 2017 and will be financed by the "France 2030" program, the communiqué said. 5.5 billion euros over five years for the development of the semiconductor industry. 
        In particular, the communiqué states that this investment will contribute to the significant development of the French FD-SOI technology ecosystem, providing energy-efficient, high-performance, safe and reliable components for Europe's major industrial sectors (automotive, industrial, 5G/6G telecom, IoT, space, etc.). With its size, performance and the technology to be produced, this plant will be the most advanced FD-SOI technology unit in Europe. With this investment, France is also making a major investment in R&D activities in the electronics industry, notably with the French Atomic and Alternative Energy Commission (CEA) to drive the FD-SOI chip manufacturing process towards the 10nm technology node. 
        STMicroelectronics and Ge-chip's new plant in France has recently started production and will gradually increase its capacity. In July last year, STMicroelectronics and Geberit announced that they would build a new 12-inch wafer fab near STMicroelectronics' existing 12-inch fab in Crolles, France (20 km from Grenoble). The new facility will support multiple manufacturing technologies, in particular FD-SOI-based process technologies, and will cover its derivatives, including FDX technology, which is at the forefront of the Lattice market, as well as a full range of STMicroelectronics nodes down to 18nm. At the time, the total investment in the project was set at 5.7 billion euros, with the French government pledging substantial financial support, but no specific figures were announced. 
        On April 18 this year, the EU Council and the European Parliament agreed on the final version of the European Chip Act. The bill plans to mobilize a total of 43 billion euros of public and private investment in semiconductor production, relaxing the rules on public subsidies for the industry. on April 28, STMicroelectronics and Ge-chip's investment in a new French factory project was approved by the European Commission.


 
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