Driving the news. On Monday, STMicroelectronics, the semiconductor company controlled by Italy’s Ministry of Finance and the French public bank Bpifrance, signed a strategic agreement with Chinese firm Innoscience for the development and production of gallium nitride (GaN) technology—a high-performance semiconductor that operates with minimal heat generation.
- Under the deal, Innoscience will use STMicroelectronics’ front-end production capacity outside China to manufacture GaN wafers, while STMicroelectronics will rely on Innoscience’s Chinese manufacturing prowess for its own GaN production.
- This technology is vital for sectors including consumer electronics, data centres, automotive, and industrial power systems.
- China currently accounts for approximately 15% of STMicroelectronics’ revenue, with the automotive market playing a significant role.
Implications for Italian R&D. STMicroelectronics has long maintained a centre of excellence in power technologies in Catania, where a specialised research hub collaborates closely with the National Research Council of Italy, supported by around €30 million in public funding.
- However, the decision to produce GaN technology in the Tours plant in France—an initiative from Chery’s first management phase—raises concerns.
- There are fears that the new collaboration with Innoscience may devalue and undermine the critical R&D activities in Catania, Southern Italy, where 5,400 employees work.
Struggles at Agrate Brianza. The situation is compounded by challenges at STMicroelectronics’ facility in Agrate Brianza, Northern Italy, which has become secondary to the French plant in Crolles.
- The Agrate Brianza plant has gradually ceded some of its unique production in mixed, digital, and analogue technologies to its French and Asian counterparts.
- With insufficient growth in 300mm silicon wafer production, Agrate remains a support unit rather than an independent profit centre.
France First. The move reflects strategic drift at STMicroelectronics.
- Though structured as a binational entity, the group’s leadership under French CEO Jean-Marc Chery has consistently favoured French and Asian sites in significant decisions.
- Italy points to a lack of clear industrial direction and weak alignment between governance and national interests.
- Italian media report that Finance Minister Giancarlo Giorgetti intends to push for a rapid leadership change at the company’s helm.
What we’re watching. The STMicroelectronics-InnoScience deal could open the door to deeper technological entanglement with China.
- Without stronger political and industrial coordination, European know-how may continue to leak through partnerships framed as innovation but driven by short-term gains.
- STMicroelectronics’ deal with China is a strategic gamble, highlighting the fragility of Europe’s tech sovereignty and the cost of a leadership model that struggles to defend long-term industrial interests.
