STMicroelectronics and GlobalFoundries announce a new French site

A screen displays the company logo for semiconductor and chipmaker GlobalFoundries Inc. during the company’s IPO at the Nasdaq MarketSite in Times Square in New York, U.S., October 28, 2021. REUTERS/Brendan McDermid

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PARIS, July 11 (Reuters) – Chipmaker STMicroelectronics and its U.S. counterpart GlobalFoundries (GFS.O) announced plans on Monday for a new site in France which they said would create around 1,000 new jobs and support plans to European Union to develop more microchips.

The companies said the new French site would include 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) in investments from major global companies at the Choose France summit this week. Read more

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The partners did not disclose the amount of investment in the new site, but the newspaper Le Figaro had announced earlier that it would be nearly 4 billion euros.

They added that the new site, in 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 increase its revenue above the $20 billion level.

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

“We will have more capacity to support our European and global customers in their 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 relaxed rules for funding innovative semiconductor factories in an attempt to boost the EU’s tech chip industry. Read more

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Reporting by Sudip Kar-Gupta; Editing by Christopher Cushing and Bradley Perrett

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