STM SEMICONDUCT R&D ITALY-FRANCE

Promoter – Financial Intermediary

STMICROELECTRONICS NV

Location

• France
• Italy

Description

The project relates to the Promoter's semiconductor research, development and innovation (RDI) and manufacturing activities for the development of the next generation of energy efficiency, resources saving and environmental protection semiconductor technologies, devices and solutions

Additionality and Impact

The project contributes to the policy objective of RDI. It concerns private sector investments in R&D activities on innovative technologies and components as well as investments in innovative production lines of leading-edge semiconductor devices, which are Key Enabling Technologies. The project is expected to lead to the development and deployment of innovative product and process technologies with substantial positive externalities. It will help to develop relevant knowledge, skills and competences, strengthen the promoter's technology edge and increase collaboration with clients and suppliers, which will lead to economic returns to society that exceed those to the private investor. The resulting wedge between private and social rates of return on investing in RDI in turn leads to aggregate underinvestment relative to levels that would be socially optimal. The proposed EIB loan satisfactorily meets the required funding needs of the promoter as it provides for the necessary flexibility in terms of long tenor and repayment profile, together with a sizeable financing volume. Furthermore, the EIB's involvement in the financing is expected to send a signalling effect to other potential lenders by also providing a quality stamp on the promoter's activity.

Objectives

The project supports investment in European RDI and production in high value-added products that contribute to the innovation and competitiveness of all major economic sectors in the EU. The project, to be carried out at the Promoter's locations in France and Italy, includes both RDI activities as well as investments in pilot lines and in advanced manufacturing capabilities for Key Enabling Technologies.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 600 million

Total cost (Approximate amount)

EUR 2170 million

Environmental aspects

Semiconductor RDI and manufacturing facilities are not specifically covered by Annexes I & II of the EIA Directive 2014/52/EU amending the Directive 2011/92/EU, and therefore not subject to a mandatory environmental impact assessment (EIA).

Procurement

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions.

Status

Signed - 16/12/2021