GlobalFoundries-STMicro Discuss Partnering For Chip Plant In France - GLOBALFOUNDRIES (NASDAQ:GFS), STMicroelectronics (NYSE:STM)

GlobalFoundries Inc GFS and STMicroelectronics N.V. STM are amid discussions to build a semiconductor factory in France with the help of government funds, Bloomberg reports.
The European Commission looks to produce 20% of the world’s chips by 2030.
The European Union executive arm proposed the 43 billion euro ($45.3 billion) Chips Act earlier to allow governments to subsidize the production of chips.
STMicroelectronics aspired to contribute to the increase of the European semiconductor volume production and the supply chain independence across European industries.
In April, GlobalFoundries and STMicroelectronics, with Soitec and the CEA research hub, collaborated to develop the next generation of FD-SOI technology.
Franco-Italian STMicroelectronics originated in Grenoble’s CEA-Leti, a region with its French plants.
Abu Dhabi-owned GlobalFoundries has a large manufacturing site in Dresden, Germany.
Intel Corp INTC and Taiwan Semiconductor Manufacturing Company Ltd TSM have shared their ambitious chip endeavors for Europe.
Countries have resorted to aggressive steps to reduce chip production dependence, especially following the severe chip crisis fueled by the pandemic.
Price Action: GFS shares traded lower by 3% at $50.20 in the premarket on the last check Monday. STM shares traded lower by 4.57% at $34.65.
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