STMicroelectronics and GlobalFoundries to
advance FD-SOI ecosystem with new 300mm manufacturing facility in
France
- New jointly-operated, high-volume
manufacturing facility to support European and global customers’
demand as the world transitions to digitalization and
decarbonization
- New facility to support a broad
range of technologies including GF’s market leading FDX™ technology
and ST’s comprehensive technology roadmap down to 18nm for
automotive, industrial, IoT and communications infrastructure
applications
- Projected multi-billion euro
collaborative investment that includes significant financial
support from the State of France
Crolles (France), July 11, 2022 –
STMicroelectronics (NYSE: STM), a global semiconductor leader
serving customers across the spectrum of electronics applications,
and GlobalFoundries Inc. (Nasdaq: GFS), a global leader in
feature-rich semiconductor manufacturing, today announced they have
signed a Memorandum of Understanding to create a new,
jointly-operated 300mm semiconductor manufacturing facility
adjacent to ST’s existing 300mm facility in Crolles, France. This
facility is targeted to ramp at full capacity by 2026, with up to
620,000 300mm wafer per year production at full build-out (~42% ST
and ~58% GF).
ST and GF are committed to building capacity for
their European and global customer base. This new facility will
support several technologies, in particular FD-SOI-based
technologies, and will cover multiple variants. This includes GF’s
market leading FDX technology and ST’s comprehensive technology
roadmap down to 18nm, which are expected to remain in high demand
for Automotive, IoT, and Mobile applications for the next few
decades.
FD-SOI technology has origins in the Grenoble
(France) area. It has been part of ST technology and product
roadmap in its Crolles facility since the early beginnings, and it
was later enabled with differentiation and commercialized for
manufacturing at GF’s Dresden facility. FD-SOI offers substantial
benefits for designers and customers, including ultra-low power
consumption as well as easier integration of additional features
such as RF connectivity, mmWave and security.
ST and GF will receive significant financial
support from the State of France for the new facility. This
facility will strongly contribute to the objectives of the European
Chips Act, including the goal of Europe reaching 20% of worldwide
semiconductor production by 2030. In addition to the sizeable,
multi-year investment in advanced semiconductor manufacturing in
Europe, it will support the leadership and resilience of the
European technology ecosystems, from R&D (with the recently
announced cooperation on R&D among ST, GF, CEA-Leti and Soitec)
to large-volume manufacturing, and support European and global
customers with additional capacity in complex, advanced
technologies for key end-markets including automotive, industrial,
IoT, and communication infrastructure. The new manufacturing
facility will be a substantial contributor to global digital and
green transformations - delivering key enabling technologies and
products. It will generate additional employment at the ST Crolles
site (approximately 1,000 additional staff for the new
manufacturing facility) and across its ecosystem of partners,
suppliers and stakeholders.
By working together, ST and GF will leverage the
economies of scale at the Crolles site as they accelerate
semiconductor capacity the world needs with high capital
efficiency.
“This new manufacturing facility will support
our $20 billion+ revenue ambition. Working with GF will allow us to
go faster, lower the risk thresholds, and reinforce the European
FD-SOI ecosystem. We will have more capacity to support our
European and global customers as they transition to digitalization
and decarbonization” said Jean-Marc Chery, President and CEO of
STMicroelectronics. “ST is transforming its manufacturing base. We
already have a unique position in our 300mm wafer fab in Crolles,
France which will be further strengthened by today’s announcement.
We continue to invest into our new 300mm wafer fab in Agrate (near
Milan, Italy), ramping up in H1 2023 with an expected full
saturation by end 2025, as well as in our vertically integrated
silicon carbide and gallium nitride manufacturing.”
“Our customers are seeking broad access to 22FDX® capacity for
auto and industrial applications. The new facility will
include GF dedicated foundry capacity for our customers offering
GF’s unique innovation and will be managed by GF personnel onsite.
This jointly operated, new manufacturing capacity expansion
leverages ST’s Crolles existing facility infrastructure enabling GF
to accelerate our growth while benefiting from economies of scale
to deliver additional capacity in a highly capital efficient manner
on our differentiated 22FDX platform, that has shipped more than
one billion chips. With today’s announcement, we are expanding GF’s
presence within Europe’s dynamic technology ecosystem and
reinforcing our position as the leading semiconductor foundry in
Europe,” said Dr. Thomas Caulfield, CEO GF. “Our global footprint
enables GF to not only meet our customers capacity needs but also
provides them supply chain security. The partnership investment
with the French government, along with our long-term customer
agreements, creates the right economic model for GF’s
investment.”
Additional information for GF investors is available at
investors.gf.com.
The project is subject to the execution of
definitive agreements and various regulatory approvals, including
from the European Commission’s DG Competition, and to the
completion of the consultation with ST’s French Works Council.
Forward-looking Information
(ST)
Some of the statements contained in this release
that are not historical facts are statements of future expectations
and other forward-looking statements (within the meaning of Section
27A of the Securities Act of 1933 or Section 21E of the Securities
Exchange Act of 1934, each as amended) that are based on
management’s current views and assumptions, and are conditioned
upon and also involve known and unknown risks and uncertainties
that could cause actual results, performance, or events to differ
materially from those anticipated by such statements, due to, among
other factors:
- changes in global trade policies,
including the adoption and expansion of tariffs and trade barriers,
that could affect the macro-economic environment and adversely
impact the demand for our products;
- uncertain macro-economic and
industry trends (such as inflation and fluctuations in supply
chains), which may impact production capacity and end-market demand
for our products;
- customer demand that differs from
projections;
- the ability to design, manufacture
and sell innovative products in a rapidly changing technological
environment;
- changes in economic, social, public
health, labor, political, or infrastructure conditions in the
locations where we, our customers, or our suppliers operate,
including as a result of macroeconomic or regional events, military
conflicts, (including the military conflict between Russia and the
Ukraine), social unrest, labor actions, or terrorist
activities;
- unanticipated events or
circumstances, which may impact our ability to execute our plans
and/or meet the objectives of our R&D and manufacturing
programs, which benefit from public funding;
- legal, political and economic
uncertainty surrounding Brexit may be a continued source of
instability in international markets and currency exchange rate
volatility and may adversely affect business activity, political
stability and economic conditions and while we do not have material
operations in the U.K. and have not experienced any material impact
from Brexit on our underlying business to date, we cannot predict
its future implications;
- financial difficulties with any of
our major distributors or significant curtailment of purchases by
key customers;
- the loading, product mix, and
manufacturing performance of our production facilities and/or our
required volume to fulfill capacity reserved with suppliers or
third party manufacturing providers;
- availability and costs of
equipment, raw materials, utilities, third-party manufacturing
services and technology, or other supplies required by our
operations (including increasing costs resulting from
inflation);
- the functionalities and performance
of our IT systems, which are subject to cybersecurity threats and
which support our critical operational activities including
manufacturing, finance and sales, and any breaches of our IT
systems or those of our customers or suppliers;
- theft, loss, or misuse of personal
data about our employees, customers, or other third parties, and
breaches of global and local privacy legislation, including the
EU’s General Data Protection Regulation (“GDPR”);
- the impact of intellectual property
claims by our competitors or other third parties, and our ability
to obtain required licenses on reasonable terms and
conditions;
- changes in our overall tax position
as a result of changes in tax rules, new or revised legislation,
the outcome of tax audits or changes in international tax treaties
which may impact our results of operations as well as our ability
to accurately estimate tax credits, benefits, deductions and
provisions and to realize deferred tax assets;
- variations in the foreign exchange
markets and, more particularly, the U.S. dollar exchange rate as
compared to the Euro and the other major currencies we use for our
operations;
- the outcome of ongoing litigation
as well as the impact of any new litigation to which we may become
a defendant;
- product liability or warranty
claims, claims based on epidemic or delivery failure, or other
claims relating to our products, or recalls by our customers for
products containing our parts;
- natural events such as severe
weather, earthquakes, tsunamis, volcano eruptions or other acts of
nature, the effects of climate change, health risks and epidemics
such as the COVID-19 pandemic in locations where we, our customers
or our suppliers operate;
- increased regulation and
initiatives in our industry, including those concerning climate
change and sustainability matters and our commitment to be carbon
neutral by 2027;
- potential loss of key employees and
potential inability to recruit and retain qualified employees as a
result of the COVID-19 pandemic, remote-working arrangements and
the corresponding limitation on social and professional
interaction;
- the duration and the severity of
the global outbreak of COVID-19 may continue to negatively impact
the global economy in a significant manner for an extended period
of time, and could also materially adversely affect our business
and operating results;
- industry changes resulting from
vertical and horizontal consolidation among our suppliers,
competitors, and customers; and
- the ability to successfully ramp up
new programs that could be impacted by factors beyond our control,
including the availability of critical third party components and
performance of subcontractors in line with our expectations.
Such forward-looking statements are subject to
various risks and uncertainties, which may cause actual results and
performance of our business to differ materially and adversely from
the forward-looking statements. Certain forward-looking statements
can be identified by the use of forward looking terminology, such
as “believes,” “expects,” “may,” “are expected to,” “should,”
“would be,” “seeks” or “anticipates” or similar expressions or the
negative thereof or other variations thereof or comparable
terminology, or by discussions of strategy, plans or
intentions.
Some of these risks are set forth and are
discussed in more detail in “Item 3. Key Information — Risk
Factors” included in our Annual Report on Form 20-F for the year
ended December 31, 2021 as filed with the SEC on February 24, 2022.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those described in this press release as
anticipated, believed, or expected. We do not intend, and do not
assume any obligation, to update any industry information or
forward-looking statements set forth in this release to reflect
subsequent events or circumstances.
Unfavorable changes in the above or other risks
or uncertainties listed under “Item 3. Key Information — Risk
Factors” from time to time in our Securities and Exchange
Commission filings, could have a material adverse effect on our
business and/or financial condition.
Forward-looking information
(GF)
This news release may contain forward-looking
statements, which involve risks and uncertainties. Readers are
cautioned not to place undue reliance on any of these
forward-looking statements. These forward-looking statements speak
only as of the date hereof. GF undertakes no obligation to update
any of these forward-looking statements to reflect events or
circumstances after the date of this news release or to reflect
actual outcomes, unless require by law.
About STMicroelectronics
At ST, we are 48,000 creators and makers of
semiconductor technologies mastering the semiconductor supply chain
with state-of-the-art manufacturing facilities. An integrated
device manufacturer, we work with more than 200,000 customers and
thousands of partners to design and build products, solutions, and
ecosystems that address their challenges and opportunities, and the
need to support a more sustainable world. Our technologies enable
smarter mobility, more efficient power and energy management, and
the wide-scale deployment of the Internet of Things and
connectivity. ST is committed to becoming carbon neutral by 2027.
Further information can be found at www.st.com.
For further information, please contact:INVESTOR
RELATIONS:Céline BerthierGroup VP, Investor RelationsTel:
+41.22.929.58.12Celine.berthier@st.com
MEDIA RELATIONS:Alexis BretonCorporate External
CommunicationsTel: + 33.6.59.16.79.08alexis.breton@st.com
About GF
GlobalFoundries (GF) is one of the world’s
leading semiconductor manufacturers. GF is redefining innovation
and semiconductor manufacturing by developing and delivering
feature-rich process technology solutions that provide leadership
performance in pervasive high growth markets. GF offers a unique
mix of design, development and fabrication services. With a
talented and diverse workforce and an at-scale manufacturing
footprint spanning the U.S., Europe and Asia, GF is a trusted
technology source to its worldwide customers. For more information,
visit www.gf.com.
Contact:Media:Laurie
KellyGlobalFoundries+1 518 265 4580 Laurie.kelly@gf.com
Investor
Relations:ir@gf.com
- C3102C - ST - GF Press release -
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