The French government is subsidizing a new chip factory by STMicroelectronics and GlobalFoundries to the tune of 2.9 billion euros. The subsidy is part of a larger French plan for the semiconductor industry.
The chip makers’ new factory is located in Crolles near the city of Grenoble. The chips that the factory will produce are primarily for the (French) automotive industry, but also industrial IoT (IIoT) applications. The chips in question are mainly 18 nm chips.
The arrival of the factory should create a thousand jobs. The entire construction of the factory, including the €2.9 billion subsidy from the French state, will cost €7.5 billion. Production at the new chip factory should increase French chip production by 6 percent annually. This is about 620,000 wafers per year.
Part of larger chip program
Apart from the construction of French nuclear power plants, the project is one of the largest French industrial projects ever and is part of a larger French development program for the semiconductor industry. The project, which is part of the EU’s Chips Act, is financed with 5.5 billion by the French state.