By Mauro Orru
GlobalFoundries Inc. and STMicroelectronics NV have agreed to build a new chip-making plant in France, adding much-needed capacity to manufacture semiconductors in Europe after a global shortage spanning more than two years.
European chip maker STMicroelectronics said Monday that it had signed a memorandum of understanding with GlobalFoundries to deliver the new multibillion-euro project that is set to receive significant financial help from the French government.
STMicroelectronics said the new plant would be adjacent to its existing facility in Crolles, France. The plant will operate at full capacity by 2026, bringing in some 1,000 new jobs.
The world's leading suppliers of semiconductors are still pushing to overcome the prolonged chip shortage that has hampered production of everything from home appliances to PCs to autos.
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(END) Dow Jones Newswires
July 11, 2022 01:32 ET (05:32 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.