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State aid: Commission approves French measure to support STMicroelectronics and GlobalFoundries to set up new microchips plant
The European Commission has approved, under EU State aid rules, a French aid measure to support STMicroelectronics ('ST') and GlobalFoundries ('GF') in the construction and operation of a new microchips manufacturing facility in France. The measure will strengthen Europe's security of supply, resilience and digital sovereignty in semiconductor technologies, in line with the objectives set out in the European Chips Act Communication. The measure will also contribute to achieving both the digital and green transition.
ec.europa.eu/commission/index_en, Apr. 28, 2023 –
The French measure
France notified the Commission of its plan to support ST and GF's project to build and jointly operate a front-end semiconductor production facility in Crolles, France. The project builds among others on technologies developed as part of the Important Project of Common European Interest ("IPCEI") for research and innovation in microelectronics that was approved by the Commission on 18 December 2018.
The aid will take the form of direct grants to ST and to GF, to support their investments in the project worth totally €7.4 billion.
The project, which is planned to be operating at full capacity by 2027, will enable the development of a large-scale manufacturing site in Europe for high performance chips, particularly dedicated to FD-SOI (Fully Depleted Silicon On Insulator) technology. This technology has been developed in Europe and exhibits substantially reduced power consumption. The project will allow to mass produce energy-efficient and secure chips addressing current and future key European markets from automotive to industrial, 5G/6G roll-out, security, defence, and space industries. The plant is expected to produce per year 620,000 wafers of 300mm diameter based on technologies and production processes not yet present in Europe.
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