STMicroelectronics STMPA.PA unveiled plans on Thursday to retrain workers and deploy robots in its older chip manufacturing plants, avoiding closures as the European semiconductor giant navigates industry challenges.

At a semiconductor conference in Sopot, Poland, hosted by industry group SEMI, Thomas Morgenstern, STMicro's head of manufacturing, showed a video of a robot placing a silicon wafer carrier into a machine.

"This is the first one we have," he said. "In the next couple of years, we are talking about numbers beyond one hundred humanoids doing jobs in our facilities."

European chipmakers, including STMicro and rivals such as NXP NXPI.O, face mounting pressure from global competitors, particularly in China, where modern automated production lines are increasing efficiency.

Ageing "fabs," or chip factories, require significant investment to compete, but they are often not upgradeable with newer tools. Options to tear down and rebuild are complicated by high costs, regulatory hurdles, and negotiations with unions in Europe.

While older fabs are generally not eligible for EU Chips Act funding, because subsidies are geared towards "first-of-a-kind" projects, industry groups including SEMI are pushing for more investments in supply chains and existing industrial strengths as part of a refreshed Chips Act 2.0.

HUMANOIDS TAKE OVER REPETITIVE TASKS

STMicro has been grappling with a restructuring plan launched in October 2024 that includes the proposed departure of 5,000 workers. While progress has been made in France, the effort has stalled in Italy, highlighting the challenges the company faces in streamlining operations.

Morgenstern said humanoids would take over repetitive and physically demanding tasks, allowing workers to move into higher-skilled roles that are in short supply. He said the company had begun a training initiative to align workforce skills with emerging needs.

"If you have a three or four-shift system, one humanoid can replace three out of four shifts," he told Reuters. "We don't want to close any facility in Europe ... the goal is to increase efficiency."

-Nathan Vifflin/Reuters