Paris: Semiconductor giant STMicroelectronics has announced a fresh investment of nearly $60 million into its Tours facility in central France, even as the site undergoes major restructuring. The funding will be directed toward setting up a pilot production line for advanced Panel-Level Packaging (PLP) technology, positioning the plant to shift from legacy operations to high-value semiconductor manufacturing.
The Tours facility has been at the center of a corporate overhaul since October last year, when STMicro launched a restructuring plan in response to weakening global chip demand. Several older production lines at the plant have been scaled down, triggering concerns among workers about job losses and the long-term future of the site.
This new commitment, however, signals a bid to revitalize Tours by introducing more advanced capabilities. By investing in PLP, STMicro hopes to transform the plant into a competitive hub that focuses on next-generation packaging technologies rather than outdated processes.
Panel-Level Packaging is considered a breakthrough in semiconductor production. Unlike traditional wafer-based systems, PLP relies on large square panels, which allow more chips to be packaged at once. This reduces costs, increases efficiency, and provides greater output in a shorter time frame.
STMicro has already rolled out PLP operations in Muar, Malaysia, producing millions of chips daily for global clients. By replicating this model in Tours, the company aims to diversify its geographic production base and strengthen its foothold in Europe’s evolving semiconductor ecosystem.
According to the company, the new pilot line in Tours is expected to be operational by the third quarter of 2026. The initiative comes with strong political interest, as STMicro is partly state-owned, with France and Italy jointly holding 27.5% of the company through a shared investment structure.
The French government, keen on maintaining high-tech manufacturing within its borders, has been closely monitoring developments at Tours. Officials view the investment as a critical step to ensure Europe’s semiconductor independence, particularly in the wake of supply chain disruptions and geopolitical tensions.
Despite the optimism surrounding the new project, concerns remain. Unions have voiced unease over potential job cuts linked to the ongoing restructuring, fearing that automation and advanced processes could reduce the need for traditional roles. While the new investment may secure the plant’s future, it also signals a shift toward a leaner, technology-heavy model of operation.
Local labour groups are pressing for guarantees that workers will be retrained and redeployed in line with the plant’s upgraded functions, rather than being sidelined as production methods evolve.
The Tours investment aligns with Europe’s broader push to expand its role in the global semiconductor supply chain. As the region seeks to cut its dependency on Asian producers, companies like STMicro are at the forefront of initiatives to bring advanced chip technologies closer to home.
If successful, the Tours project could become a flagship example of how Europe can modernize legacy industrial sites and reposition them for strategic technological growth.