March 19, 2026 /SemiMedia/ — STMicroelectronics is stepping up the use of robotics and workforce retraining at its older chip plants in Europe, as it looks for ways to improve efficiency without shutting down facilities.

At an industry event hosted by SEMI, the company showed a robot handling wafer carriers on a production line. A senior manufacturing executive said more than 100 similar machines could be introduced over the next few years.

European chipmakers, including NXP Semiconductors, are facing growing competition from overseas rivals, especially in China, where newer fabs rely heavily on automation to raise output and cut costs.

Older fabs in Europe often require heavy investment to remain viable, but upgrades can be difficult due to equipment limits and cost concerns. At the same time, shutting down and rebuilding plants involves regulatory hurdles and labor negotiations, making transformation a more practical option.

Current subsidy programs in Europe tend to favor advanced projects, leaving existing fabs with limited support. Industry groups are pushing for broader funding in future policy updates to include supply chains and mature-node production.

STMicroelectronics is also carrying out a restructuring plan launched in October 2024, which includes around 5,000 job reductions. Progress has varied across regions, highlighting the complexity of streamlining operations.

The company said robots will take over repetitive and physically demanding tasks, allowing workers to move into higher-skilled roles. Training programs are already underway to support this shift, with the aim of improving overall productivity while maintaining its manufacturing base in Europe.