EIB signs €500m deal with STMicroelectronics to boost Europe’s chip sector

The agreement represents the first tranche of a broader €1 billion credit line recently approved by the EIB in support of STMicroelectronics, one of Europe’s leading semiconductor manufacturers.

The European Investment Bank (EIB) and STMicroelectronics have signed a €500 million financing agreement aimed at strengthening Europe’s competitiveness, technological leadership and strategic autonomy in the semiconductor sector.

The agreement represents the first tranche of a broader €1 billion credit line recently approved by the EIB in support of STMicroelectronics, one of Europe’s leading semiconductor manufacturers. ST has a strong industrial footprint across Italy, France and Malta, and supplies critical technologies to the automotive, industrial, personal electronics and communications infrastructure markets.

The new financing will support STMicroelectronics’ multi-year investment programme in innovative semiconductor technologies and advanced devices, spanning both research and development and high-volume manufacturing. Approximately 60 percent of the funding will be directed toward expanding and upgrading high-volume manufacturing capacity, including key production sites in Catania, Agrate and Crolles. The remaining 40 percent will support research and development activities focused on next-generation semiconductor solutions.

STMicroelectronics operates both R&D and large-scale manufacturing facilities in Italy and France, making the investment a significant contribution to Europe’s industrial base and its ambitions to strengthen domestic semiconductor production under the EU’s broader technology and resilience strategies.

Since 1994, the EIB has supported nine projects with STMicroelectronics, providing a total of around €4.2 billion in financing. This long-standing partnership reflects the EU Bank’s continued backing of strategically important industries that underpin economic growth, innovation and security.

EIB Vice-President Gelsomina Vigliotti said Europe’s leadership in semiconductor innovation is critical for competitiveness, resilience and climate objectives.

“Europe’s ability to lead in semiconductor innovation is vital for our competitiveness, resilience and climate goals,” she said. “This agreement reflects the EIB’s commitment to supporting strategic industries that enable the green and digital transitions and strengthen Europe’s technological sovereignty.”

STMicroelectronics President and CEO Jean-Marc Chery said the financing will accelerate the company’s efforts to reinforce Europe’s semiconductor ecosystem.

“ST continues to be committed to strengthening Europe’s semiconductor ecosystem, and this significant loan from the EIB aims at bolstering our efforts in R&D for differentiated technologies and high-volume manufacturing across our sites in Italy and France,” he said. “Our longstanding collaboration with the EIB underscores our commitment to ensuring European technology leadership in the global semiconductor market.”

EIB Vice-President Ambroise Fayolle highlighted the central role semiconductors play in modern economies, from electric vehicles and renewable energy systems to digital infrastructure and communications networks.

“By financing ST’s investments in research and advanced manufacturing, we are helping Europe secure critical technologies and create high-skilled jobs for the future,” he said.

The announcement follows a recent visit by a high-level EIB delegation, led by Vice-Presidents Gelsomina Vigliotti and Ambroise Fayolle, to STMicroelectronics’ facility in Catania. The site is a state-of-the-art plant covering the full Silicon Carbide (SiC) value chain and represents a cornerstone of the EIB-backed investment programme, particularly in support of energy-efficient power electronics and electric mobility.

The financing reinforces the EIB’s role in advancing Europe’s green and digital transitions while supporting industrial innovation, supply chain resilience and long-term economic growth.