STMicroelectronics And GlobalFoundries Bag Approval For French Chip Factory - GLOBALFOUNDRIES (NASDAQ:GFS), STMicroelectronics (NYSE:STM)

On Friday, chipmakers STMicroelectronics NV STM and GlobalFoundries Inc GFS won the EU approval to build a new chip factory with French state aid in France.
The companies disclosed their plan in July 2022.
The new facility will be situated next to STM's existing plant in Crolles and reach full capacity by 2026, with up to 620,000 wafers per year of production at a size of 18-nm, Reuters reports.
"The aid will take the form of direct grants to ST and to GF, to support their investments in the project worth totally €7.4 billion," the European Commission stated.
The European Commission looks to produce 20% of the world's chips by 2030.
The European Union executive arm proposed the €43 billion ($45.3 billion) Chips Act earlier to allow governments to subsidize the production of chips.
Countries worldwide emphasized building their domestic semiconductor presence after the 2020 pandemic that first erupted in China vandalized the global supply chains leading to a chip crisis for automobiles and electronic gadgets.
Price Actions: GFS shares closed lower by 0.41% at $58.01 on Thursday. STM shares traded lower by 2.26% at $41.87 premarket on the last check Friday.