Chipmaker STMicroelectronics NV announced on Thursday that it has secured a €1 billion (approximately $1.2 billion) credit line agreement with the European Investment Bank (EIB).

In a statement, the company stated that the first tranche of €500 million will be allocated to support semiconductor research and development as well as large-scale chip manufacturing operations in Italy and France.

The Franco-Italian joint venture noted, "About 60% of the funding under this agreement will enhance large-scale manufacturing capabilities at key sites, including Catania, Agrate, and Crolles, while the remaining 40% will be directed toward R&D initiatives."

This marks the ninth financing agreement between the EIB and STMicroelectronics since 1994, bringing cumulative financing to €4.2 billion.