France Spending US$3 Billion to Support New Chip Plant

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--France has agreed to provide almost 3 billion euro (US$3.3 billion) in funding support for a new chip plant in Crolles, in south-eastern France.

The semiconductor manufacturing facility, which will cost a total of 7.4 billion euro (US$8.2 billion) to build, is being jointly developed by GlobalFoundries (NYSE:GFS) (GF) (Santa Clara, California) and STMicroelectronics (ST) (NYSE:STM) (Geneva, Switzerland) and will help the European Union (EU) lessen its reliance on outside sources for semiconductors needed for a wide range of technologies, including computers, cars and mobile phones.

Construction is underway next to ST's existing Crolles plant, with commissioning expected in 2027. The plant will specialize in high-performance chips, with a focus on FD-SOI (Fully Depleted Silicon On Insulator) technology. Developed in Europe, it has substantially reduced power consumption and will be targeted at "current and future key European markets" from automotive to industrial, 5G/6G roll-out, security, defense and space industries. It will be capable of producing 620,000 wafers of 300-millimeter diameter, based on technologies and production processes "not yet present in Europe", according to the European Commission (EC).

The project, which was only announced last July, benefitted from the new fast-tracking of chip-related projects thanks to the European Chips Act introduced last year.

"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," said Margrethe Vestager, executive vice-president in charge of Commission competition policy. "The measure will ensure that the industry has a reliable source of power efficient semiconductors for a range of applications."

Industrial Info is tracking 29 active semiconductor plant projects, both grassroot and expansions, across Europe, totaling about US$60 billion in value. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Last year, the EU introduced the European Chips Act, backed by 15 billion euro (US$17 billion) in additional public and private investment until 2030. This came on top of 30 billion euro (US$34 billion) of public investments that it had already planned. Within the Act, the Chips for Europe Initiative set aside 11 billion euro (US$12.4 billion) to advance semiconductor projects. The planning process has also been fast-tracked in Member States for new grassroot facilities and expansions of existing plants. For additional information, see February 21, 2022, article - Europe Enacts 'Chips Act' to Battle Semiconductor Shortages.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).