[News] STMicroelectronics and GlobalFoundries Reportedly Halt French Wafer Plant Plans, Shift Focus to Chinese Market

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According to a report from ijiwei, citing Bloomberg, previously in 2022 STMicroelectronics and GlobalFoundries announced a EUR 5.7 billion investment plan to construct a wafer fabrication plant in France. However, this joint venture project has since stalled. Meanwhile, ijiwei notes that while construction project of new plants in Europe faces delays, STMicroelectronics and GlobalFoundries have been actively strengthening its presence in China.

In May 2023, GlobalFoundries revealed that the European Commission had approved subsidies under the European Chips Act to support the construction of a 12-inch wafer fabrication plant focused on automotive and industrial semiconductors. The project, with an estimated total cost of EUR 7.5 billion, is slated to receive substantial financial support from the French government, administered by Bpifrance.

Despite these commitments, ijiwei highlights that there has been little progress in the 18 months since the original announcement. The project has been put on hold, casting doubt on its future feasibility.

On the other hand, ijiwei reports that by late 2023 and into 2024, STMicroelectronics and GlobalFoundries are increasing their investment in China. In October 2024, GlobalFoundries hosted its annual technology summit in Shanghai, emphasizing a strategic pivot to the Chinese market. During the event, the importance of China was underscored, and plans to expand operations in the region were introduced, as mentioned by a report from Chinese media outlet China Business Network.

Meanwhile, STMicroelectronics has also deepened its operations in China, as indicated by ijiwei. In June 2023, the company’s CEO, Jean-Marc Chery, announced a partnership with China’s Sanan Optoelectronics to expand an 8-inch SiC wafer fabrication plant in China.

In November 2024, STMicroelectronics expanded its collaboration with Hua Hong, the second-largest foundry in China, to produce 40nm microcontroller chips in Shenzhen by the end of 2025, according to a report from Reuters.

In addition to the stalled wafer plant project by STMicroelectronics and GlobalFoundries in France, Bloomberg also reported that Intel’s plan to build foundries in Germany has been put on hold. The project is now under a two-year pause, with industry sources indicating it may be abandoned.

Read more

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• [News] GlobalFoundries Fined by U.S. for Supplying Chips to Affiliate of China’s SMIC

(Photo credit: STMicroelectronics)