STMicroelectronics Reshapes Manufacturing Strategy
STMicroelectronics is working to reshape its global manufacturing footprint to shore up key R&D, design, and high-volume assets for advanced manufacturing in Europe. The company plans to increase efficiency through increased automation and AI and to execute planned investments out to 2027 to bolster its infrastructure in 300-mm silicon, 200-mm silicon carbide, and R&D.
The company issued an announcement last week. It comes as part of a previously announced program that aims to solidify its position in the semiconductor industry.
According to CEO Jean-Marc Chery, the plan aims to future proof the company’s integrated device manufacturer model and improve its capabilities for innovation.
“As we focus on advanced manufacturing infrastructure and mainstream technologies, we will continue to leverage all of our existing sites and bring redefined missions for some of them to support their long-term success,” he said. “The technology R&D, design, and high-volume manufacturing activities in Italy and France will continue to be central to our global operations and will be reinforced via planned investments in mainstream technologies”.
ST plans to continue scaling up its 300-mm fab in Agrate Brianza, Italy with the goal of becoming the company’s flagship high volume manufacturing facility for smart power and mixed signal technologies. The plan is to double its current capacity to 2000 wafers per week, with planned modular expansions increasing capacity up to 14000 wafers per week, depending on market conditions. As focus shifts to 300-mm manufacturing, the Agrate 200-mm fab will refocus on microelectromechanical systems.
The 300-mm fab in Crolles, France, the company said, will be further cemented as the core of ST’s digital products ecosystem. The Crolles site will boost capacity to 14,000 wafers per week by 2027, with planned modular expansions increasing capacity up to 20,000 wafers per week, depending on market conditions. Additionally, ST intends to convert the Crolles 200 mm fab to support electrical wafer sorting high volume manufacturing and advanced packaging technologies, hosting activities that do not currently exist in Europe, the company said. The focus will be on next-generation technologies including optical sensing and silicon photonics.
ST plans to hold the course on 200-mm manufacturing at its sites in Rousset and Tours, France, as well as its site in Ang Mo Kio, Singapore. The company said that it anticipates a headcount reduction of 2800 on a voluntary basis over three years and expects cost savings in the high triple digit million-dollar range by the end of 2027.
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