[News] Macron: France Must Attain 2–10nm Advanced Semiconductor Manufacturing Capabilities

Recently, during the VivaTech conference in Paris, French President Emmanuel Macron emphasized that France must gain mastery over advanced semiconductor manufacturing processes in the 2 to 10-nanometer range, securing an irreplaceable role in the global technology supply chain.

In recent years, France has sought breakthroughs in the semiconductor field through policy support, industry-academia-research collaboration, and international cooperation. Currently, the country’s strengths lie primarily in mature manufacturing processes and specific application domains.

The “France 2030” investment plan identifies semiconductors as one of seven key disruptive innovation areas, with Euro 5.5 billion earmarked for the sector by 2030. Of this, Euro 2.9 billion has already been allocated to support the Euro 7.5 billion joint wafer fab project between STMicroelectronics and GlobalFoundries. Located in Crolles, this facility is expected to reach full capacity by 2028, with an annual output of 620,000 18nm wafers targeting strategic markets such as automotive electronics and the Internet of Things (IoT).

On the research front, the FD-SOI (Fully Depleted Silicon on Insulator) technology developed by the CEA-Leti lab in Grenoble has enabled STMicroelectronics to break through the 18nm node. GlobalFoundries is also applying this technology in the production of low-power chips.

However, France still has substantial room to grow in the field of advanced nodes.  Industry observers believe that if France wishes to realize its ambition of producing cutting-edge chips, one of the most feasible paths is to attract major players like TSMC or Samsung to build fabs on French soil.

TSMC is continuously expanding its 3nm capacity to meet demands from major clients like Apple and NVIDIA. Its 2nm (N2) process, scheduled for mass production in the second half of 2025, will utilize gate-all-around (GAA) nanosheet transistor technology. Compared to the 3nm (N3E) node, N2 offers 10%–15% performance improvement at the same power level, 25%–30% power conservation at the same speed, and a 15% increase in transistor density. TSMC also plans follow-on nodes including N2P (a performance-enhanced variant) and A16, which introduces backside power delivery to free up routing space—ideal for high-performance computing (HPC) applications.

In the 3nm race, Samsung fell behind TSMC in yield rates, though it has secured some customer orders. The company is expected to aggressively catch up in the 2nm space. In its Q1 2025 earnings report, Samsung stated that improving 2nm GAA yields is its top priority, with full-scale mass production slated for 2H25. As per South Korean media in June, Samsung’s 2nm yield rate was only 30% at the start of 2025, but has since begun progressing toward a 50% target.

Notably, in response to shifting global dynamics, leading foundries are increasingly prioritizing geographically diversified capacity strategies. This trend provides France with a potential opening to attract players like TSMC or Samsung to set up fabs domestically. However, the high capital and technical barriers to advanced process manufacturing mean France still needs to overcome four major challenges:

1. Subsidy and Cost Balance

France must offer subsidies comparable to those provided by Germany and the U.S., while also reducing overall costs through tax incentives and energy pricing strategies to make the country more attractive for foundry investments.

2. Technology Ecosystem Upgrade

Both TSMC and Samsung are using GAA transistor architecture for their 2nm processes, an area where France currently lacks sufficient technological groundwork and supporting supply chain infrastructure.

3. Market Demand Cultivation

France has traditionally focused on mature nodes, and its AI ecosystem has yet to reach scale. Creating substantial demand for advanced nodes may require policy-driven stimulation, such as government procurement and support for domestic AI enterprises.

4. Talent and Sustainability

Semiconductor manufacturing demands a large pool of highly skilled engineers, yet France faces a talent shortage in this field. Additionally, advanced fabs are resource-intensive, especially in terms of energy and water usage, which may conflict with France’s carbon neutrality goals.

In Conclusion

France’s ambitious plan to enter the advanced semiconductor race is still in its early stages. Its success will depend heavily on the scale and execution of policy support, as well as the strategic decisions of industry giants like TSMC and Samsung in the coming years.

(Photo credit: VIVA Technology 2025)