STMicroelectronics NV (STM.US), a leading European semiconductor manufacturer, unveiled a transformation plan on Thursday aimed at retraining long-serving employees and deploying robots in older chip fabrication plants. The initiative is designed to help the company navigate industry challenges and avoid facility closures.
During a semiconductor conference in Sopot, Poland, organized by industry group SEMI, STMicroelectronics’ manufacturing head Thomas Mogenstern presented a video demonstration of a robot loading silicon wafer carriers into processing equipment. "This is the first robot we are putting into operation," Mogenstern stated. "Over the next few years, we plan to deploy more than one hundred humanoid robots across our factories to perform various operational tasks."
European chipmakers, including STMicroelectronics and rival NXP Semiconductors NV (NXP.US), are confronting mounting competitive pressure from global players—particularly those based in China, which operate highly automated modern production lines and continue to raise efficiency levels. Older wafer fabs require substantial investment to remain competitive but often cannot be upgraded simply by replacing equipment. Meanwhile, building entirely new facilities is complicated by high costs, regulatory hurdles, and negotiation demands from European labor unions.
Legacy fabs generally do not qualify for funding under the European Chips Act, as subsidies are primarily directed toward "first-of-a-kind" projects. Industry organizations such as SEMI are advocating for updated legislation—dubbed Chips Act 2.0—that would increase investment in supply chains and existing industrial strengths.
Humanoid robots are expected to take over repetitive and physically demanding roles, freeing employees to shift into higher-skilled positions for which there is currently a shortage. STMicroelectronics began a restructuring program in October 2024 that includes cutting 5,000 jobs. While progress has been smoother in France, efforts in Italy have stalled, underscoring the challenges the company faces in optimizing operations.
Mogenstern noted that the company has launched a training program to align employee skills with emerging roles. "In a three- or four-shift setup, one humanoid robot can replace human labor across three of those shifts," he explained. "We have no intention of closing any plants in Europe…the goal is to increase efficiency."
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