Bruno Lemaire, Minister of Economy and Finance, has just announced on Monday that Bercy would allocate an envelope of 2.9 billion euros to the new ST Microelectronics semiconductor factory located in Crolles, in Isère. The project, whose total cost is estimated at 7.5 billion euros, is the result of a partnership between ST Micro and the American GlobalFoundries, mentions France Bleu. This is the most significant aid granted by the State to an industrial project since 2017.
State aid will be financed by the France Relance plan, which provides an overall envelope of 5.5 billion for the semiconductor sector.
It is “the largest industrial investment in recent decades, excluding nuclear” underlined Bruno Le Maire when the project was announced in July 2022.
EU wants to supply 20% of global semiconductor market by 2030
The future plant will be located in the Grésivaudan valley. It is currently under construction next to the ST Microelectronics site. A thousand jobs should be created.
This major project, announced at the “Choose France” summit, should reach full capacity by 2026, with “an annual production of 620,000 300 mm wafers at full capacity”.
It is part of a European plan, says Chip Act. The EU wants to supply 20% of the world’s semiconductor market by 2030. The challenge is to quadruple current European production. The European Chips Act plans to mobilize a total of 43 billion euros of public and private investment in the production of semiconductors.
Components for the automotive, connected objects and industry market
Europe has seen its market share fall in recent decades to less than 10% of world production. A situation that aggravates its dependence on Asian producers.
“This project will make it possible to add almost 6% of new production capacities to the existing European capacity”, explained the Ministry of the Economy.
The Crolles plant will supply components for the automotive, connected objects and industrial markets.