A “resizing programme” that could see semiconductor giant STMicroelectronics (ST) cut up to 3,000 jobs in France and Italy will not affect its Malta operations, the company confirmed to Times of Malta.

Last week, ST’s CEO Jean-Marc Chery announced that the company is considering a six per cent reduction in its global workforce, with discussions on voluntary redundancy schemes set to commence.

ST employs 50,000 people worldwide, with 1,800 of them based in Malta, making it one of the country’s largest private employers. The company exports over €600 million worth of products annually.

The news follows the company’s release of its 2024 financial results, which Mr Chery described as marking “one of the worst years in many decades for the industries we serve, particularly in industrial and automotive.”

ST reported a 20 per cent decline in revenues compared to 2023 and a net income of $1.56 billion, a significant drop from the $4 billion it recorded the previous year.

Despite these challenges, ST reassured Times of Malta that the restructuring will only apply to non-production activities such as research and development, meaning its Kirkop manufacturing site will not be affected. The spokesperson further confirmed that the company’s future investment plans for Malta remain unchanged.

Malta’s role in ST’s global operations

With 1,800 employees at its Kirkop plant, ST is a key player in Malta’s manufacturing sector. The facility, operational since 1981, is the largest assembly and testing plant of its kind in Europe, handling over 1,200 ST products. These products support global technological advancements in automotive and consumer electronics, including MEMS sensors and advanced chip packages for automotive applications.

The Kirkop site remains a critical part of ST’s global network of 14 manufacturing facilities, which includes production sites in France, Italy, and Singapore, as well as test and assembly operations in Malta, Morocco, China, Malaysia, and the Philippines. The Maltese plant contributes significantly to ST’s production capacity, manufacturing 2.7 million units daily and incorporating Industry 4.0 technologies to drive efficiency.