September 17, 2025 /SemiMedia/ — STMicroelectronics said it will not carry out layoffs at its Agrate fab in northern Italy, following talks with the Italian government and labor unions. Industry Minister Adolfo Urso welcomed the decision, noting that the company had scrapped earlier redundancy plans and presented an industrial restart program for the site.

The chipmaker confirmed that job reductions will only take place under a voluntary departure scheme, reflecting a cooperative approach with unions and authorities.

STMicroelectronics added that it is evaluating the possibility of expanding the Agrate facility after 2027, depending on market conditions and feasibility studies. The company also clarified that no structural changes are planned for its other Italian plants.

The group, 27.5% owned by the Italian and French governments, had faced mounting pressure earlier this year after union warnings of up to 1,200 job cuts in Agrate and public criticism of CEO Jean-Marc Chery. Recent negotiations, however, indicate progress in easing tensions and securing long-term stability for STMicro’s operations in Italy.