GlobalFoundries and STMicroelectronics considering a New Fab in France

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Recent news suggests that TSMC isn’t too interested in setting up a fab in Europe, but it appears there are other interested parties that are now courting the EU, namely a potential joint venture between GlobalFoundries and STMicroelectronics. The two companies are hoping to get a slice of the same cake as Intel, namely the European Chips Act, to help subsidise the cost of the proposed fab. Although GlobalFoundries are headquartered in New York and STMicroelectronics in Geneva, the latter being a French-Italian conglomerate, the planned location for the new fab will be somewhere in France.

It’s highly unlikely that this will be a cutting edge or even a leading edge fab, as neither company is in the business of producing products in those market segments. ST makes a wide range of chips from MCUs and other types of microprocessors, to specialised memory products, a wide range of sensors, MEMS based devices and all kinds of electronics for electrical vehicles, as well as highly specialised components for the space industry. GloFo obviously stepped off the competitive foundry ladder some years ago and have been focusing on specialised processes and nodes since then, such as FD-SOI, a technology, something the two companies announced a joint partnership around earlier this year. As such, it’s likely that this potential fab will focus on making parts needed for the automotive industry in Europe, among other things. There’s still a long way to go and neither company has made any kind of official statement about the potential partnership as yet.

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