STMicroelectronics and GlobalFoundries partner up to build a $5.7 billion semiconductor manufacturing facility in France.
According to the organization, the French government will provide “significant financial support” for the construction of the factory. According to Reuters, the project is anticipated to cost $5.7 billion. The factory will focus on creating wafers, which are essential for producing chips.
With more than $12 billion in yearly revenue as of 2021, Switzerland’s STMicro is a significant participant in the semiconductor industry. The company manufactures a wide range of chips, including integrated circuits for smart automobiles. Customers of STMicro work in several markets, including automotive, manufacturing and IT infrastructure service.
GlobalFoundries is a major player as well. The California-based organization produces semiconductors for advanced driver assistance systems, cellphones, and several other electronics, generating $6.4 billion in revenue last year.
Primed to produce IoT and automotive chips
The new fab will be constructed in Crolles, France. By 2026, the fab should be operating at full capacity. When fully operational, it will be able to produce 620,000 wafers annually. The fab will support FD-SOI (Fully Depleted Silicon on Insulator), a manufacturing method favoured for chips in smart cars and IoT electronics.