STMicroelectronics revealed on Thursday plans to deploy robots and retrain employees in its older chip manufacturing plants, aiming to avoid closures amid mounting industry pressures. Speaking at a semiconductor conference in Sopot, Poland, hosted by industry group SEMI, Thomas Morgenstern, STMicro’s head of manufacturing, demonstrated a robot placing a silicon wafer carrier into a machine. “This is the first one we have,” he said, adding that within a few years, the company expects to operate over a hundred humanoid robots across its facilities.

European chipmakers, including STMicro and rivals like NXP, are under growing pressure from international competitors, particularly in China, where modern automated production lines are improving efficiency. Aging chip factories, or “fabs,” require significant investment to remain competitive, yet many cannot accommodate newer equipment. Rebuilding them is complicated by high costs, regulatory restrictions, and labor negotiations in Europe.

Older fabs are generally ineligible for EU Chips Act funding, which prioritizes “first-of-a-kind” projects. Nevertheless, industry groups such as SEMI are advocating for additional investment in supply chains and existing industrial capabilities, a focus expected in a potential Chips Act 2.0. STMicro has been managing a restructuring plan launched in October 2024, which includes the planned exit of 5,000 employees. While progress has been made in France, efforts have slowed in Italy, illustrating the challenges of streamlining operations.

Humanoid robots are expected to handle repetitive and physically demanding tasks, allowing employees to move into higher-skilled positions where shortages exist. Training initiatives have already begun to align workforce skills with these new roles. “If you have a three- or four-shift system, one humanoid can replace three out of four shifts,” Morgenstern told Reuters. “We don’t want to close any facility in Europe … the goal is to increase efficiency.” By combining automation with workforce retraining, STMicro aims to strengthen efficiency and maintain operations across its European facilities without resorting to widespread closures.