Semiconductor giant STMicroelectronics’ plan to restructure its global production system is attracting attention as a “next-generation infrastructure investment” that will determine the future of the industry.
🟦 STMicro’s Production Restructuring and Strengthening of Bases: Next-Generation Semiconductor Strategy Accelerated by Large-Scale Restructuring and AI Investment
STMicroelectronics (ST) has released an update on its 2024 production restructuring program. This initiative has two main objectives:
The first is increased investment in state-of-the-art manufacturing infrastructure. The facility will be expanded to produce 300 mm silicon wafers and 200 mm silicon carbide (SiC) wafers, with plans to increase capacity to 4,000 wafers per week at the Agrate plant in Italy (double the current capacity) and up to 20,000 wafers per week at the Chrol plant in France.
The second is to improve the efficiency of existing facilities. While utilizing existing technologies such as 150 mm and 200 mm, efforts will be made to maximize productivity and energy-saving efficiency. This includes the introduction of AI and automation, with the aim of achieving both efficiency and sustainability.
🟦 Why is ST changing its production system now?
Behind this large-scale restructuring is the diversification and sophistication of global demand for semiconductors.
In recent years, the spread of electric vehicles (EVs), renewable energy, and AI-related devices has led to a rapid increase in the need for high-performance, high-durability power semiconductors and high-density integrated chips. In particular, wide bandgap semiconductors such as silicon carbide (SiC) and gallium nitride (GaN) have excellent power-saving performance and thermal resistance, and ST is strengthening its bases to meet the growing demand.
In addition, we are not “abolishing” old manufacturing equipment, but are aiming to ensure sustainable competitiveness by improving production efficiency by combining AI and the latest technologies. This is also a testament to ST’s commitment to maintaining a stable supply of products for mature markets.
🟦 Summary
What has become clear from this restructuring is a strategy that balances “concentrated investment in advanced technologies” and “optimal utilization of existing assets.” ST has set out to strengthen its infrastructure as a stepping stone to the next generation of markets. On the other hand, the fact that we do not waste existing bases and reuse them through technological innovation can be said to be a point of differentiation from other companies.
ST’s assumption of voluntary retirement of up to 2,800 employees is about 5% of the total, so it’s a big reform.
