STMicroelectronics and GlobalFoundries Inc. announced on Monday plans to set up a new chip manufacturing facility in France, which will be jointly funded by the government.

The plant is expected to reach a full capacity of 620,000 18-nanometers chips, widely used in the electronics and auto industries, per year by 2026. Some estimates suggested the investment was worth around €5.64 billion.

The production site aims to employ about 1,000 people, the release added. "We will have more capacity to support our European and global customers as they transition to digitalization and decarbonization," STMicroelectronics CEO Jean-Marc Chery noted.