STMicroelectronics announced on Wednesday a $60 million investment in its facility located in Tours, France, where it plans to develop a pilot production line for advanced semiconductor manufacturing technology.

The Franco-Italian joint venture stated that it will develop next-generation advanced processes at the facility. The company has been transferring old chip production lines away from Tours as part of a major restructuring plan announced last October.

STMicroelectronics said in a statement: "This project focuses on advanced manufacturing infrastructure and brings redefined missions to several plants in France and Italy to support their long-term success."

The new technology is called Panel Level Packaging (PLP), which allows STMicroelectronics to manufacture chips on large square panels instead of small round silicon wafers.

The company said it currently uses this technology at its Muar facility in Malaysia for a client, where the plant produces over 5 million chips daily.

PLP reduces many manufacturing steps that chip manufacturers typically perform in Asia where production costs are lower, allowing them to be produced in Europe due to economies of scale and higher levels of automation.

STMicroelectronics expects the pilot production line to become operational in the third quarter of 2026.