STMicroelectronics (STM) said Thursday that it has signed a 500 million euros ($585 million) financing agreement with the European Investment Bank as the first tranche of a 1 billion euros credit line to strengthen Europe's semiconductor industry.

The chipmaker said the funds will be used to support its investment program in new chip technologies and products in Italy and France, where it operates both research sites and large manufacturing plants.

About 60% of the agreement is dedicated to high-volume manufacturing capabilities at locations including Catania, Agrate, and Crolles, with the remaining 40% devoted to research and development, the company said.

Shares of the company were down 1.6% in recent Thursday premarket activity.