STMicro weighs Crolles fab expansion for AI chip demand

STMicroelectronics expects to decide on a Crolles site expansion by late 2026. CEO Jean-Marc Chery cites rising AI data center demand for silicon photonics.

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STMICROELECTRONICS NV will decide on expanding its Crolles chipmaking facility in France by the end of 2026 as demand for silicon photonics used in artificial intelligence data centers accelerates. CEO Jean-Marc Chery made the announcement at a conference in Geneva, Switzerland hosted by BNP Paribas. The decision depends on adoption of near-package optics, where optical engines sit closer to processors.

Chery said the shift toward near-package optics would require a capacity decision. This technology integrates optical components directly into chip packaging to improve data transfer speeds.

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