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GlobalFoundries, STMicro Consider French Chip Factory Venture

  • The companies want government funds to produce chips in France
  • The project would focus on developing energy efficient chips
STMicroelectronics circuit at the company's factory in Grenoble.
STMicroelectronics circuit at the company's factory in Grenoble.

GlobalFoundries Inc. and STMicroelectronics Inc. are in talks to build a semiconductor factory in France together with the help of government funds, according to people familiar with the matter.

The two companies want to take advantage of a new push from the European Commission to produce 20% of the world’s chips by 2030, the people said, who asked not to be named discussing private information. The European Union executive arm proposed the 43 billion euro ($45.3 billion) Chips Act earlier this year that would allow EU governments to give subsidies for the production of chips deemed first of a kind in the EU.