Malta has marked another milestone in what is being described as the country’s largest foreign direct investment, as a new facility was officially transferred to STMicroelectronics in Ħal Kirkop.

Prime Minister Robert Abela, accompanied by Economy Minister Silvio Schembri, attended the handover of the new facility from INDIS to the semiconductor company as the €250 million project officially entered its next phase.

The investment, which is being carried out in collaboration with Maltese authorities, is set to further strengthen Malta’s position as a competitive hub for advanced manufacturing and semiconductor production.

The new factory will make use of advanced technology, automation and robotics, and is expected to reinforce Malta’s role in high-value technological manufacturing.

Speaking during the event, Dr Abela explained that the facility will produce some of the most advanced components and microchips for international markets, including products used in satellites, aircraft and other electronic equipment.

He said the operation would contribute to an increase in the value of Malta’s industrial output while continuing to strengthen the country’s reputation as a destination capable of supporting high-level technological manufacturing.

The Prime Minister also highlighted how technological advancement and automation would provide workers with more tools to increase productivity, while also creating demand for additional training, new skills and stronger career opportunities with better wages.

Dr Abela added that the Government’s economic model focuses not only on the number of jobs created, but also on the quality of those jobs.

He described the project as part of Malta’s broader economic transformation over the past 13 years, driven by investment in industry, people and the modernisation of the economy. He also referred to Malta’s work in building a semiconductor ecosystem through initiatives involving Malta Enterprise, Malta’s participation in the European IPCEI semiconductor programme, collaboration with IMEC and the development of a national competence centre for chips.

Minister Schembri said the project reflected the confidence global companies continue to place in Malta’s capabilities.

“This investment is a vote of confidence in our people and in our country,” he said, adding that Malta is continuing to raise the level of advanced manufacturing in sectors such as semiconductors, which are essential for medical devices, electric vehicles and advanced energy systems.

He added that the project aligns with Vision Malta 2050 and the Government’s efforts to attract high-value investment built on digital innovation and AI-driven smart manufacturing.

Meanwhile, Laurent Filipozzi described the inauguration as another important step in the long-standing collaboration between ST and Malta.

“With the continuous support and collaboration of the Government, Malta Enterprise, INDIS and the Maltese authorities, we are strengthening ST’s presence in Malta and building the facilities required for the future of advanced manufacturing,” he said.

The KK3 project represents a €250 million investment over an 18-month period and will include advanced production spaces, cleanroom infrastructure, modern mechanical and electrical systems, as well as technology-driven internal logistics systems.