STMicroelectronics NV ADR RegS (STM.US) invests $60 million to upgrade its French factory, and begins construction of an advanced chip production line for trial operation.

Chip manufacturer STMicroelectronics NV ADR RegS (STM.US) announced on Wednesday that it will invest $60 million in its factory in Crolles, France, planning to build a pilot production line for advanced semiconductor manufacturing technology at the factory. The French-Italian joint venture stated that it will develop new generation advanced process technology at the Crolles factory. Back in October last year, STMicroelectronics NV ADR RegS began relocating multiple old chip production lines from the Crolles factory after announcing a large-scale restructuring plan. In a statement, STMicroelectronics NV ADR RegS said, "The project focuses on the construction of advanced manufacturing infrastructure, and has also redefined the core tasks of some factories in France and Italy to support the long-term sustainable development of these factories." As one of Europe's largest chip manufacturers, STMicroelectronics NV ADR RegS has launched cost-cutting plans after facing years of decline in its main markets, planning layoffs at factories like Crolles. This move has sparked opposition from unions and other stakeholders. Currently, the Italian and French governments jointly own 27.5% of the chip manufacturer through a holding company. The new technology being developed in this plan is called "Panel-Level Packaging (PLP)." With this technology, STMicroelectronics NV ADR RegS can manufacture chips on large square panels, replacing traditional small circular silicon wafers. The company revealed that it has already applied this technology for a customer at a factory in Muar, Malaysia, which can produce over 5 million chips per day. In traditional chip manufacturing, multiple production steps need to be completed in Asia where manufacturing costs are lower; but PLP technology eliminates these steps, coupled with its economies of scale and higher level of automation, making it possible to produce chips in Europe. STMicroelectronics NV ADR RegS expects that the pilot production line at the Crolles factory will be operational in the third quarter of 2026.