Malta’s ambitions to become a leader in high-end manufacturing may be facing early tests, as global semiconductor giant STMicroelectronics (ST) announced plans that include 2,800 voluntary job exits across its international workforce.

Notably, while Malta’s Kirkop facility is set to receive investments in advanced automation, it remains unclear whether local jobs will be affected – and ST is not saying.

In a press release issued 10th April, STMicroelectronics outlined a sweeping strategy to “reshape its global manufacturing footprint” over the next three years. The move is part of a broader programme first announced in October 2024, aimed at reinforcing its Integrated Device Manufacturer model and driving long-term sustainability through strategic investments and site optimisation.

According to the company, the changes will result in up to 2,800 global job exits by 2027, “exclusively through voluntary measures,” and will focus on aligning workforce skills with next-generation manufacturing demands, such as automation and AI integration.

Among the updates, STMicroelectronics said that its Kirkop site in Malta, a major test and packaging facility, will be upgraded with “advanced automated technologies” to support production of next-generation semiconductor products. However, the statement offered no clarity on whether the Maltese workforce would be impacted by the global job reductions.

Repeated attempts from WhosWho.mt to seek clarification from STMicroelectronics Malta went unanswered, leaving local employees, stakeholders, and industry observers in the dark about the potential implications for jobs on the island.

Malta’s newly unveiled Vision 2050 identifies semiconductors and pharmaceuticals as critical sub-sectors for Malta’s future economic growth. The strategy positions these industries as high-value, resilient pillars of a modern economy, boasting high entry barriers and strong long-term demand – making them key targets for job creation and investment.

The timing of ST’s announcement, coinciding with this national vision, highlights both the promise and the precarity of anchoring economic growth to sectors that are deeply exposed to global restructuring trends.

In its press release, ST made it clear that each of its existing sites would continue to play a role in the company’s future operations. The Kirkop plant, in particular, was singled out for technological enhancements. Yet, while the company outlined specific changes for facilities in Italy, France, and Singapore – including job reallocations, capacity shifts, and new activities – there was no further elaboration on how Malta fits into this evolving picture beyond automation upgrades.

ST’s CEO, Jean-Marc Chery, commented: “As we focus on advanced manufacturing infrastructure and mainstream technologies, we will continue to leverage all of our existing sites and bring redefined missions for some of them to support their long-term success.”

Still, the question remains: Will increased automation at Kirkop come at the expense of existing roles, or will it create opportunities for upskilling and new employment? With no official response, speculation is likely to grow – especially in the absence of engagement with the Maltese public or employee representatives.