STMicroelectronics and GF's joint venture will not crowd out TSMC's orders

STMicroelectronics and GF will invest 5.7 billion euros (about 38.532 billion yuan) to build a new semiconductor factory in France. Industry experts believe that STMicroelectronics' orders to TSMC should not be crowded out.

Yesterday, STMicroelectronics and GF announced that the two companies will build a new, co-operated semiconductor manufacturing plant near STMicroelectronics’ existing 12-inch wafer fab in Crolles, France. The new plant is expected to employ 1,000 employees and will receive substantial financial support from the French government.

In this regard, Liu Peizhen, researcher and director of the Industrial and Economics Database of the Taiwan Academy of Economics, said that the integrated component manufacturing (IDM) factory continued to expand its production capacity, especially after the experience of the shortage of automotive chips in recent years, the IDM industry hopes to gain more dominance.

Liu Peizhen pointed out that self-expanding production will face a heavy cost burden, and may encounter the risk of slowing down the economy in the future. Localized supply chain, in line with local policy development.

According to reports, because the leading wafer foundry TSMC has not yet decided to set up factories in Europe, STMicroelectronics can only cooperate with secondary foundries that are willing to invest in Europe. The joint venture between STMicroelectronics and GlobalFoundries should be based on mature processes. STMicroelectronics and TSMC are cooperating on advanced processes and third-generation semiconductors, and TSMC's orders will not be crowded out.

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