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STMicroelectronics And GlobalFoundries Bag Approval For French Chip Factory

Anusuya Lahiri
·1 分鐘文章

  • On Friday, chipmakers STMicroelectronics NV (NYSE: STM) and GlobalFoundries Inc (NASDAQ: GFS) won the EU approval to build a new chip factory with French state aid in France.

  • The companies disclosed their plan in July 2022.

  • The new facility will be situated next to STM's existing plant in Crolles and reach full capacity by 2026, with up to 620,000 wafers per year of production at a size of 18-nm, Reuters reports.

  • "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 European Commission stated.

  • The European Commission looks to produce 20% of the world's chips by 2030.

  • The European Union executive arm proposed the €43 billion ($45.3 billion) Chips Act earlier to allow governments to subsidize the production of chips.

  • Countries worldwide emphasized building their domestic semiconductor presence after the 2020 pandemic that first erupted in China vandalized the global supply chains leading to a chip crisis for automobiles and electronic gadgets.

  • Price Actions: GFS shares closed lower by 0.41% at $58.01 on Thursday. STM shares traded lower by 2.26% at $41.87 premarket on the last check Friday.

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This article STMicroelectronics And GlobalFoundries Bag Approval For French Chip Factory originally appeared on Benzinga.com

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