France Plans To Launch A Major Semiconductor Manufacturing In The Country

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Two major firms from France and the US have announced their intentions to build a semiconductor factory in Southeast France. This is coming after France-based carmaker Renault announced that its car sales dropped in the first half of the year. It cited the global shortage of semiconductors as one of the major reasons.

American GlobalFoundries and Franco-Italian STMicroelectronics, during the “Choose France” investment summit in the week, agreed to build a factory in Crolles.

A $5.7 Million Investment That Will Generate Over 1,000 Jobs

According to the announcement, the factory will be built on an existing site that belongs to STMicroelectronics.  The companies will be investing €5.7 million to build the factory with the hope of creating more than 1,000 jobs.

They will be manufacturing chips of different sizes up to 18 nanometers while doubling current production levels. Semiconductors are found in most everyday accessories and appliances such as washing machines, video game consoles, solar panels, aircraft, and cars.

France’s economy minister Bruno Le Mare called the development the second biggest industrial investment in the past decades apart from nuclear. The project will reinforce the capacity of France to produce technology and increase the supply of components and accessories for the manufacturing sector. Maire added that the factory will be a step forward for industrial sovereignty.

Since early 2020 when the coronavirus became a global pandemic, the demand for semiconductors has skyrocketed. This has provoked a massive dependence on Asia for production.

Europe To Match US And Asia As Leaders In Semiconductor Production

However, Europe will be increasing its share of global semiconductor production by 20% to supply increased demand in France and other European countries.  As announced, the new factory will become part of the Chips Act, which was designed by the EU to match the US and Asia as global leaders in semiconductor production.

Other companies are also looking to set u more investments in France to boost the car-making industry in the country. Vietnamese carmaker Vinfast, at the Choose France summit, announced plans to set up 25 showrooms and workshops across France. Once complete, the shops will create additional 400 jobs next year.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.