GloFo, ST finalize terms for €7.5 billion wafer fab at Crolles

Business news | June 5, 2023

By Peter Clarke

Chip companies GlobalFoundries and STMicroelectronics have said they have agreed the deal to create a jointly-operated 300mm wafer fab in Crolles France with a budget of €7.5 billion (about US$8 billion).

The plan for a joint fab was first announced 11 July 2022, but without a budgetary figure.

The fab is slated to supply fully depleted silicon on insulator (FDSOI) circuits used for low power and wireless designs as well as some bulk CMOS. At full capacity in 2026 the plant will produce 620,000 wafers per year, 58 percent for Globalfoundries and 42 percent for ST, according to previously announced details.

The fab has an overall projected cost of €7.5 billion to cover capital expenditure, maintenance and ancillary costs. The facility will benefit from significant financial support from the French government. Officials reportedly said the French government would provide €2.9 billion, which would represent 38.6 percent of the total cost. Globalfoundries said the aid would be in-line with the European Chips Act and be part of the “France 2030” plan, recently approved by the European Commission.

“In partnership with ST in Crolles, we are further expanding GF’s presence within Europe’s dynamic technology ecosystem while benefiting from economies of scale to deliver additional capacity in a highly capital efficient manner,” said Thomas Caulfield, CEO of GlobalFoundries, in a statement.

Jean-Marc Chery, CEO of STMicroelectronics, said: “Today marks an important milestone for ST, for GF as well as for Europe. This could not have been achieved without the support of the French government as well as of the European Commission.”