STMicroelectronics & GlobalFoundries: Where did the Billions Go ?
In 2022, French President Emmanuel Macron, Economy Minister Bruno le Maire, and EU Commissioner Thierry Breton championed a €2.9 billion aid package for STMicroelectronics and GlobalFoundries.
On July 12, 2022, French President Emmanuel Macron and Economy Minister Bruno Le Maire launched a partnership between STMicroelectronics and U.S.-based GlobalFoundries at the Crolles site in Isère. Supported by €2.9 billion in public funding of €7.5 billion project, the initiative aimed to double EU semiconductor production to compete with U.S. and Asian industry leaders.
Following Covid-driven chip shortages, the sector faced overproduction, leading to surplus inventories as demand from industrial and automotive markets declined. GlobalFoundries suspended its role, with no significant on-site contributions observed. By early 2024, STMicroelectronics halted factory expansion, and the French government has provided little public comment on the project’s progress.
GlobalFoundries’ involvement remains contingent on market recovery, which has not occurred 1. U.S. policy under President Trump emphasizes repatriating investments, further complicating the partnership. On employment, the promised 1,000 jobs have not materialized. STMicroelectronics, facing a 63% profit decline and 23.3% revenue drop in 2024, announced 2,800 job cuts after temporarily closing multiple facilities to reduce costs.