Amid Europe’s push for chip independence, STMicroelectronics is investing $60 million in France to pilot advanced packaging technology and shift its Tours plant into the future.
STMicroelectronics will invest $60 million in its Tours facility in France to establish a pilot production line for advanced semiconductor technologies. The project will further focus on building new infrastructure and reshaping the functions of the company’s French and Italian sites to align with long-term growth strategies.
It comes less than a year after STMicroelectronics launched a major restructuring plan that relocated older production lines away from Tours.
Panel-Level Packaging (PLP), the technology at the centre of the new line, allows chips to be made on large square panels instead of traditional silicon wafers. The method, already in use at the company’s plant in Muar, Malaysia, improves efficiency and scale. That site produces more than five million chips per day for a single customer.
By reducing several production steps typically outsourced to lower-cost Asian plants, PLP enables higher automation and economies of scale in Europe. The pilot line in Tours is expected to be operational by the third quarter of 2026.
Aiming to strengthen Europe’s role in the global chip industry, the investment comes at a sensitive time. STMicroelectronics is pursuing cost-cutting measures, including job reductions at the Tours site.
This move has faced opposition from unions and local stakeholders. Despite these tensions, the company insists that the new initiative will support innovation and future competitiveness.
The Italian and French governments, which together hold a 27.5% stake in STMicroelectronics through a joint entity, are backing the strategy as Europe seeks to bolster its semiconductor independence.
