According to a Maltese government announcement, StMicroeletronics is set to make the biggest foreign direct investment in Malta with an investment of up to €200 million in the expansion of its facility in Malta. The expansion is already ongoing
St Microelectronics is the biggest factory and exporter in manufactured products exporter in Malta and has recently acquired a €1 billion credit line from the European Investment Bank Currently, STMicroelectronics is upgrading its facilities with new automation and advanced machinery. There is no official statement or indication by the company on the amount of capital they will be investing in Malta. Surely, if they are expanding their plant, they are expanding the footprint of their production line, but this does not mean that the investment in the plant would be the equivalent of the investment in Malta – they are not going to purchase the machinery in Malta.
So the investment is undoubtedly good news, but there is no evidence that this is the biggest foreign direct investment in history. It’s a significant expansion of the current plant and its technology.
There are also some caveats with these kind of investments. The government is paying companies like STMicroelectronics for expenditure in research and development. Semi-conductor companies doing research and development in Malta are receiving a %175 tax rebate.
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