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Chip giants to build a factory in France!

GlobalFoundries, and STMicro are set to build chip plant, backed by the French government aimed at boosting supply-chain security

GlobalFoundries Inc. and STMicroelectronics two of the world’s largest chip makers, said they would team up to build a semiconductor factory in France, adding on gov’s subsidies in what has become a global race to strengthen control over technological supplies.

The factory in France would be jointly operated by the two chip makers and receive what they described as major financial support from the French government.

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The three parties plan to invest a total of more than $5.7 billion in the plant, which they said should open by 2026 and create more than 1,000 jobs.

Both chip makers and the French government goal was to support the European Union’s ambition of becoming less dependent on other countries for important technologies.

The expanding footprint of GlobalFoundries would help provide its customers with supply-chain security, said CEO Mr. Caulfield

Over the past two years,

U.S., China and EU have raced to strengthen their domestic chip-making abilities because of a confluence of factors.

Though the U.S. and Europe have leading companies in developing semiconductor technology, many of the actual chip manufacturers are based in East Asia, including Taiwan.

The global chip shortage,

which has only recently shown signs of starting to abate, and a pandemic that caused world-wide shipping delays further spurred politicians to take steps to localize what has long been a globally integrated semiconductor supply chain.

The EU earlier this year introduced a plan to make available about $49 billion to boost European chip research and production. Shortly after, Silicon Valley giant Intel Corp. announced its intention to build plants for advanced chips in Germany and suggested the project would be contingent upon the government support coming through.