(RTTNews) - The European Investment Bank (EIB), STMicroelectronics (STM, STMPA.PA), on Thursday announced a 500 million euros financing agreement as the first tranche of a 1 billion euros credit line to support semiconductor R&D and high-volume chip manufacturing in Italy and France.
The agreement aims to strengthen Europe's competitiveness and strategic autonomy in semiconductor technologies.
The operation forms part of a broader 1 billion euros facility recently approved by the EIB for STMicroelectronics, which has major R&D and manufacturing sites in Italy, France and Malta.
The company said that the financing will support the company's investment program in innovative semiconductor technologies and devices.
In addition, about 60% of the funding will go toward high-volume manufacturing at the company's facilities in Catania, Agrate and Crolles, while the remaining 40% will back research and development activities.
The deal marks the ninth agreement between the EIB and ST since 1994, bringing total financing to approximately 4.2 billion euros.
On Wednesday, STMicroelectronics closed trading 0.02% higher at EUR 22.26 on the Paris Stock Exchange.
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