Malta has advanced its economic development with the completion of Project KKO and the launch of a new water treatment facility by STMicroelectronics, a leading global semiconductor company.

The project forms part of a broader expansion that supports Malta’s role in the semiconductor sector and aligns with Government targets set out in Malta Vision 2050.

Through “cutting-edge automation, precision engineering, and a highly skilled workforce,” the ST Malta facility is now formally recognised as the European Union’s first advanced semiconductor backend manufacturing site.

ST’s newly unveiled operational water treatment plant is designed to drastically lessen water usage and encourage reuse within the production cycle, as part of the Government's wider sustainability and circular economy efforts.

Seven years ago, the ST Malta facility was considered for closure. Yet, through Government backing, in partnership with Malta Enterprise and INDIS Malta, the plant has since been revitalised, now employing over 1,600 people.

Following the launch of Project KKO, ST has expanded its investment in research, development, and innovation at its Malta plant, positioning it as one of Europe's most advanced semiconductor facilities.

“The company has introduced pilot programs for improved productivity with new digital and robotics tools and technologies for advanced manufacturing, driven by full automation and AI-powered systems,” the statement read.

It continued: “STMicroelectronics is also deeply invested in education and training initiatives with multiple stakeholders on the island to promote upskilling the current workforce to enhance productivity and deliver higher-value work – ultimately translating into better salaries and improved quality of employment.”

Fabio Gualandris, STMicroelectronics’ President, said that the Kirkop plant “is now one of the most productive within the ST Group worldwide, and a strategic high-volume plant in ST’s global operations”.

“The completion of the upgrade of our facilities for employees and the inauguration of our new Water Treatment Plant at STMicroelectronics in Kirkop marks another important milestone in our fruitful collaboration with the authorities in Malta, a partnership that has been thriving since 1981,” he continued.

Top Government officials were also present at the inauguration, including Economy, Enterprise and Strategic Projects, Silvio Schembri and Minister for the Environment, Energy and Enterprise Miriam Dalli.

Malta is set to launch its first National Competence Centre for Semiconductors, and through a partnership with Imec, a global leader in R&D, the country is poised to further enhance its standing in the industry.

The Maltese semiconductor industry exports over €1.2 billion in goods – accounting for roughly a third of the country’s total exports – and provides employment for more than 4,000 people, making it one of Malta’s key economic sectors.