Chip manufacturer STMicroelectronics is investing $60 million to renovate its plant in Tours, France, with the aim of developing next-generation chip manufacturing technology through a new Panel-Level Packaging (PLP) pilot line.

PLP is an advanced, automated chip packaging and testing technology that increases production efficiency and reduces costs, playing a crucial role in enabling smaller, more powerful, and more affordable electronic devices. Unlike traditional circular wafers, PLP uses large rectangular carriers, which allow for higher productivity and make the process more suitable for high-volume manufacturing.

The company announced that it expects to finalise the development of its PLP technology by the third quarter of 2026. This initiative builds on STMicroelectronics’ existing PLP line in Malaysia and leverages its global research and development network. The company plans to extend the use of PLP to a broader range of products, including those for automotive, industrial, and consumer applications, reflecting a wider industry trend towards advanced packaging solutions to meet growing demand for high-performance chips.

Fabio Gualandris, president of quality, manufacturing, and technology at STMicroelectronics, stated that the developments at the Tours site are intended to drive innovation in chip packaging and testing, supporting a wide range of applications such as radio frequency (RF), analogue, power, and microcontrollers. He highlighted the involvement of a multidisciplinary team of experts in production automation, process engineering, data science, and product R&D, all collaborating on the programme.

The investment aligns with broader European efforts to strengthen the region’s semiconductor manufacturing capabilities and reduce reliance on overseas suppliers, particularly in light of recent global chip shortages. The European Union’s Chips Act, for example, aims to double the EU’s share of global semiconductor production by 2030, and STMicroelectronics’ expansion in France is consistent with this strategic objective.

Gualandris added that the new initiative in Tours will expand the company’s process, design, and manufacturing innovation capabilities, supporting the development of next-generation chips in Europe.

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