The European Chips Act, adopted September 2022, represents the most direct interface between France 2030 and EU industrial policy: a €43 billion European framework for semiconductor sovereignty that amplifies French national investments and enables projects of a scale France could not finance alone. France has emerged as one of the top three Chips Act beneficiaries — alongside Germany and Ireland — securing the largest single approved Chips Act project: the €7.4 billion STMicroelectronics/GlobalFoundries Crolles expansion, with approximately €2.9 billion in combined national and European public support.
The European Chips Act Architecture
The Chips Act operates through three pillars:
Pillar 1: Chips for Europe Initiative (€3.3B EU funding) Technology and infrastructure investment in research, design, and pilot production capabilities. Managed through the KDT JU transitioning to Chips JU. France’s CEA-Leti and Nano 2030 program are primary beneficiaries.
Pillar 2: Ensuring Security of Supply (€8B+ state aid authorization) The enabling mechanism for France 2030’s semiconductor investments. Creates a new “first-of-a-kind” state aid category allowing EU member states to grant higher subsidy rates for genuinely new-to-Europe technologies. This is the pillar under which the Crolles expansion and future French semiconductor projects receive EU-endorsed state aid.
Pillar 3: Monitoring and Crisis Response Early warning system for supply chain disruptions. France participates through SGPI and DGE coordination with the European Semiconductor Board.
France’s Chips Act Flagship: Crolles 300mm Expansion
The centerpiece of France’s Chips Act implementation is the expansion of the Crolles semiconductor manufacturing complex near Grenoble — the largest semiconductor manufacturing cluster in continental Europe west of Germany.
Project parameters:
- Lead companies: STMicroelectronics + GlobalFoundries
- Total investment: €7.4 billion (announced June 2023)
- Location: Crolles, Isère (Auvergne-Rhône-Alpes)
- Technology: 18nm FD-SOI and 22nm FD-SOI advanced nodes
- France 2030 contribution: €600M+ (national grant)
- Chips Act contribution: Up to €2.3B (EU co-funding via Pillar 2 state aid authorization)
- Total public support: ~€2.9B (39% of total investment)
- Expected capacity: 620,000 additional 300mm wafers/year at full production
- Jobs: 1,000+ direct manufacturing jobs; 5,000+ indirect supply chain jobs
The FD-SOI technology produced at Crolles is strategically critical for ultra-low-power chips in IoT devices, automotive sensors, 5G infrastructure, and edge AI. The expansion cements Crolles as the world’s primary FD-SOI source.
Soitec’s role: The expansion is inseparable from Soitec, the Grenoble-based SOI wafer manufacturer that produces the substrates for FD-SOI chips. Soitec holds 80%+ global SOI market share and is investing in Bernin manufacturing capacity to match Crolles expansion demand.
IPCEI Microelectronics Phase 2: France’s Cross-Border Chip Investment
Approved January 2023. 68 companies in 14 member states. Total public funding: €8.1 billion (largest IPCEI by value).
French participants:
- STMicroelectronics: SiC power devices, advanced FD-SOI node development, next-generation non-volatile memory. Estimated French contribution: €600M–€900M.
- Soitec: Next-generation SOI substrates for 3nm and below. Estimated contribution: €200M–€300M.
- Thales: Secure microelectronics for defense and critical infrastructure. Estimated contribution: €150M–€200M.
- Atos/Eviden: HPC processor ASICs, exascale computing chips. Estimated contribution: €100M–€150M.
- CEA-Leti: Open-access R&D infrastructure for advanced packaging and compound semiconductors. Estimated contribution: €200M.
Combined French IPCEI ME2 commitment: approximately €1.2B–€1.5B.
Nano 2030: France’s Semiconductor Research Foundation
Nano 2030 coordinates semiconductor R&D at CEA-Leti, CNRS-affiliated labs, and Grenoble-area universities. It provides the pre-competitive research infrastructure feeding both IPCEI ME2 and the Crolles manufacturing investments.
Nano 2030 budget under France 2030: ~€500M over 2021–2027, co-funded by STMicro, Soitec, GlobalFoundries, and other industrial partners alongside national and EU public funding.
The program operates CEA-Leti — Europe’s largest microelectronics research center with 1,900 researchers and 300mm pilot line capabilities — as an open innovation platform for prototype manufacturing access.
Accessing Chips Act Funding in France
For French companies seeking Chips Act support:
IPCEI route: Companies join multi-national consortia. France’s SGPI and DGE coordinate national participation. Requires demonstrating cross-border value chain integration and technology breakthrough significance.
Chips JU (Chips for Europe Initiative): Open calls managed by the Chips JU partnership. French companies apply through standard EU grant process, often with ANR or Bpifrance co-funding.
Pillar 2 (Strategic Investment): For large fab investments, France 2030 grants are structured as Pillar 2 investments and notified to EC for state aid approval. Process: 12–24 months from application to EC approval.
Broader Ecosystem Impact
Equipment manufacturers: French semiconductor equipment specialists benefit from expanded domestic fab capacity requiring French equipment procurement.
Design companies: French IC design companies benefit from domestic access to advanced process nodes, reducing dependence on TSMC and Samsung for prototype runs.
Training and skills: France has launched semiconductor technician training programs at IUT institutions in Grenoble, Crolles, and Tours — targeting 1,000 additional qualified technicians by 2027.