Thales, Radiall, Foxconn discuss setting up OSAT plant in France

Thales, connector maker Radiall and Taiwanese contract manufacturer Foxconn have started discussions to establish an outsourced semiconductor assembly and test (OSAT) facility for fan-out wafer-level packaging in France. With a planned production capacity over 100 million systems-in-package (SIPs) per year by 2031, the 25O+-million-euro plant aims to address European advanced-packaging needs for the aerospace, automotive, telecom and defense markets.

The project may be a replacement for the FDSOI fab owned jointly by STMicroelectronics and Globalfoundries. Announced in 2023 and backed by the French government, the facility was put on hold earlier this year, citing market headwinds. Although conditions in the semiconductor industry are indeed rough, it’s possible that the project has been shelved permanently. If that’s the case, the French government would likely be keen on sponsoring another venture that would boost France’s and Europe’s strength in semiconductors.