Government, ST Microelectronics strike deal, announce major investment in Malta

Lengthy negotiations between government and ST. Microelectronics have managed to secure further investment by the multi-national at the Kirkop plant that has so far kept a 1,500 workforce that were in jeopardy following the announcement of a hike in utility tariffs last year.

29 June 2010, 12:00am
by Karl Stagno-Navarra

2 min read

While a number of workers at the plant were made redundant, further downsizing was envisaged for this year, as ST. Microelectronics had warned government that it was set to reduce its operations following a reported 60 per cent increase in expenses due to higher water and electricity bills.

Prime Minister Lawrence Gonzi who yesterday visited the Kirkop plant together with finance minister Tonio Fenech, steered clear of explaining what concessions were made to ST. Microelectronics for it to keep its operations in Malta.

It is understood that ‘part’ of the government’s assistance to the company includes worker training to cover competences in higher-end technology - enabling the company to produce its latest products in Malta.

The new investment – that was not disclosed – includes the installation of state-of-the-art equipment that will now enable the Malta plant to produce latest technology micro-chips for worldwide use in mobile phones and computer games.

The recently-installed equipment is used for the production of MEMS Systems (Micromechanical Systems) an innovative technology in which ST has world leadership. MEMS are highly miniaturised components used for gyroscopes, compasses and microphones used in the latest smartphones, computer games, auto-electronics, medical equipment, digital cameras and other technology-based products.

Speaking at the end of his tour around the plant, Prime Minister Lawrence Gonzi expressed his satisfaction that ST. Microelectronics commitment towards Malta and its recognition of the skills within the Maltese.

He said that the investment was a result of the government's intervention to counter the impact of the international economic downturn by having supported companies and safeguarded jobs during the recession, enabling those companies to be in a position to invest further and strengthen their position.

Throughout its 39 years in Malta, ST Microelectronics has invested a total of US$1.1 billion.