STMicroelectronics inaugurated the completion of Project KKO and the ST Malta facility is now officially recognised as the first advanced manufacturing backend plant in the European Union.
It sets a new benchmark in Industry 4.0 practices, a government statement said, combining cutting-edge automation, precision engineering, and a highly skilled workforce to deliver high-value, high-quality semiconductor products.
Speaking at the event, STMicroelectronics President Fabio Gualandris announced that the Malta plant is now one of the most productive within the ST Group worldwide, and a strategic high volume plant in ST's global operations.
This remarkable turnaround comes just seven years after the facility was earmarked for closure. The plant has now been transformed driven by strong government support, visionary planning, and Malta's growing talent pool.
Minister for the Economy, Enterprise and Strategic Projects Silvio Schembri commented, "This is not just an investment in infrastructure. It is an investment in people, in skills, in innovation - in the Malta of tomorrow. Project KKO exemplifies our commitment to Malta Vision 2050, where we transform challenges into opportunities and position Malta as a hub for high-value, sustainable industry."
Building on the success of Project KKO, ST has already invested in R&D and innovation for manufacturing processes in the Malta plant, transforming it into one of the most sophisticated semiconductor facilities in Europe. The company has introduced pilot programs for improved productivity with new digital and robotics tools and technologies for advanced manufacturing, driven by full automation and AI-powered systems.
STMicroelectronics is also deeply invested in education and training initiatives with multiple stakeholders on the island to promote upskilling the current workforce to enhance productivity and deliver higher-value work - ultimately translating into better salaries and improved quality of employment.
The Government of Malta, in partnership with Malta Enterprise and INDIS Malta, played a crucial role in enabling this transformation. Today, the plant employs over 1,600 highly skilled professionals, significantly contributes to national exports, and supports a vibrant innovation ecosystem.
The semiconductor sector in Malta already generates over €1.2 billion in exports - about one-third of all goods exports - and sustains more than 4,000 high-quality jobs. These results underscore Malta's strategy of focusing on sustainable, knowledge-based sectors that futureproof the economy while offering inclusive opportunities for growth.
Looking ahead, Malta will soon launch its first National Competence Centre for Semiconductors, further aligning with the EU Chips Act and expanding Malta's role in research, design, and advanced manufacturing. Strategic partnerships, such as the agreement with global R&D leader Imec, will further strengthen Malta's position as a destination for innovation and investment in microelectronics.