If the rumours are true that Crolles is to be revived as a great microelectronics R&D centre, then the decision by STMicroelectronics to invest heavily in the site, if confirmed will be magnificent news for European microelectronics capability.
Nothing has yet been confirmed, but the rumours quoted in the French newspaper Les Echos, are to the effect that ST will invest $300m a year in Crolles over the next four years, a total of $1.2bn.
The Elysee Palace, home of France’s new fun-loving prime minister Nicolas Sarkozy, (a.k.a. M’sieur Bling-bling) has issued a statement saying it will support the plan financially.
Under the old Crolles agreement, the French government gave tax concessions to companies investing in Crolles (ST, NXP and Freescale) which amounted to 40 per cent of the cost of running the facility.
So the cost, to ST, may be nearer to $700m than $1.2bn and, furthermore, if Freescale decides to come back to Crolles, as is also rumoured, then the cost to ST may be reduced again.
All in all a very positive development for European microelectronics.
If it happens.
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