STMicroelectronics (ST) has secured €1 billion in financing from the European Investment Bank (EIB) to strengthen its semiconductor R&D and mass production capabilities in Europe.

ST announced on the 22nd that it has signed a financial agreement with the European Investment Bank (EIB) worth a total of 1 billion euros with the goal of strengthening Europe's technological competitiveness and strategic autonomy.

The announcement came as the first 500 million euro (approximately 870 billion won) in credit lines approved by the EIB were officially signed.

This is considered a key investment to improve innovation, sustainability and energy efficiency in the European semiconductor industry.

ST is a leading semiconductor company with a strong manufacturing and R&D base across Europe, including in Italy, France, and Malta, and supplies core chips to diverse markets, including automotive, industrial, consumer electronics, and communications infrastructure.

The EIB has supported nine ST projects since 1994, and the cumulative financial support, including this agreement, amounts to approximately 4.2 billion euros (approximately 7.29 trillion won).

This new agreement supports ST's investment program in Italy and France to develop advanced semiconductor technologies and expand its high-volume production capabilities.

About 60% of the total funds are allocated to major production sites such as Catania and Agrate in Italy and Crolles in France.The remaining 40% will be used to strengthen the manufacturing capacity of the mountain facility, and the remaining 40% will be used for R&D of next-generation semiconductor technology.

In particular, the Catania facility is a key production base spanning the silicon carbide (SiC) value chain and is one of the main investment targets of this financial support.

“Semiconductor innovation capabilities are essential for Europe’s competitiveness, resilience and climate goals,” said Gelsomina Vigliotti, Vice President of the European Investment Bank. “This agreement demonstrates our strong commitment to supporting strategic industries that will strengthen Europe’s technological sovereignty and accelerate its eco-friendly and digital transformation.”

“ST has continuously invested in strengthening the European semiconductor ecosystem, and this significant financial support from the EIB will provide an important foundation for strengthening our differentiated technology development and high-volume production capabilities at our Italian and French sites,” said Jean-Marc Chery, President and CEO of ST. “Our long-standing collaboration with the EIB reflects ST’s commitment to securing Europe’s technology leadership in the global semiconductor market.”

EIB Vice President Ambroise Fayolle also said, “Semiconductors are a core technology that drives all sectors of the modern economy, from electric vehicles to digital infrastructure,” and explained, “By supporting ST’s investment in research and advanced manufacturing, the EIB is contributing to Europe securing core technologies of the future and creating highly skilled jobs.”