MaltaMedia.com

ST Microelectronics have announced the installation of new state-of-the-art equipment at its factory at Kirkop together with further investment in a new line of products that will place the company among global leaders in microchip technology.

This investment means that the company will be able to produce the latest microchips for worldwide use in mobile telephony and computer games.

Government has concluded discussions to enable further investment in new high-end technology production at ST Microeletronics in Malta. The discussions were held with ST President and Chief Executive Officer Carlo Bozotti and with Chief Operations Officer Alain Dutheil. Eugenio Re, Managing Director and Tonio Portughese, Director of ST Malta Board of Directors, also participated in the discussions.

The Prime Minister and Minister Fenech visited the STMicroelectronics plant at Hal Kirkop on Tuesday morning. They were shown a new business line investment by ST for the production of MEMS Systems (Micromechanical Systems); an innovative technology in which ST has technological leadership and which offers substantial prospects for ST’s business in Malta. MEMS are the highly miniaturised components, such as for gyroscopes, compasses, and microphones that have enabled the latest smartphones, popular home game machines, auto electronics, medical equipment, digital cameras and other technology based products.

Both sides discussed manufacturing prospects in further high value added technologies with the scope of improving the viability of the Malta plant in a highly competitive world market, and to support the company in investing further in Malta in the development of new technologies as these are released from STMicroelectronics’ research and development centres.

With Government’s support, STMicroelectronics will also be investing further in research and development, and in further and continuous training of its employees to cover required competences in higher-end technology production. This will strengthen its technical potential and capacity in Malta and STMicroelectronics will be able to develop more highly competitive products within the international semiconductor industry. Through this cooperation the company will refresh its product lines and maintain the current level of employment, amounting to 1,500 employees.

The cumulative investment in STMicroelectronics Malta to the end of 2009 has reached approximately US$1.1 billion. This investment is dedicated to the consolidation and modernisation of the highly sophisticated chip assembly and test equipment, the plant facility, and critically, its people. The company produces and delivers products to clients who are some of the best known global brands. It is able to do this through continuous training in quality management and sophisticated production methods, and through the dedication and ingenuity of its people.

Prime Minister Lawrence Gonzi expressed Government’s satisfaction that ST Microelectronics is continuing to recognize our country’s and worker’s potential and will be investing further in Malta to strengthen its production. He stated that investments in new technology will increase our country’s competitiveness, adding that Government is committed to create an economic environment which is conducive to attracting further foreign direct investment. He noted that while the international economic and financial crisis has impacted all countries, Government’s responsible actions safeguarded jobs and supported companies which found themselves in difficulty. As a result these same companies were able to invest further and thus strengthen their position in a difficult market. The Prime Minister expressed his satisfaction at the fact that ST is investing further in Malta, to the benefit of local employees. Notwithstanding the worldwide economic situation, ST is continuing to show trust in Malta as a prime investment location.

Minister of Finance, the Economy and Investment Tonio Fenech also welcomed this investment in terms of increasing the country’s productivity. This investment is about attracting higher value added jobs in manufacturing, which is an important pillar to Malta’s Vision 2015 and Beyond strategy. This new commitment to invest in Malta provides further positive signals to our economy following the publication of the National Statistics Office data on economic growth in the first quarter of 2010, which also shows that manufacturing registered the highest increase over the last five quarters.

Tonio Fenech noted that, thanks to Government’s efforts over the past two years, “we are now in a position to look ahead with determination and strength, leveraging on our work, relationships and investment in our economy. Our economic planning is bearing excellent results and we are now looking forward to fresh growth at what we hope is the end of a very difficult global economic period. We are looking at sustained growth by leveraging the areas in which Malta can maintain a competitive advantage. Government has supported STMicroelectronics in its effort to strengthen its global competitiveness, in the world economy, and this is now paying dividends to our country. This has translated itself in the attraction and commitment to fresh investment and the creation of high value-added jobs.”

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