China’s primacy in microelectronics production is as yet unrivalled. The EU recently decided to pull up its socks and put its money where its mouth is. An €8 billion state-aid package has been approved in its bid to entice chipmakers to build facilities in the US to counter China.
One of Europe’s largest microchip producers, Malta’s STMicroelectronics, shall benefit handsomely from this huge financial injection. It will receive well over €20 million to upgrade its production lines.
This will enable the locally based company to reach the pinnacle of Smart Factory and Industry 4.0 standards. It was reported that the investment is set to incorporate advanced automation concepts, designed to elevate the quality of devices manufactured in Europe.
The Maltese government, through Malta Enterprise, welcomed the news, hailing it as a testament to the nation’s commitment to spearhead industry transformation and embrace cutting-edge technology.
Not only will STMicroelectronics upgrade, significantly, its production capacity and cutting-edge technology, but this robust investment is expected to have spillover effects within Malta’s economy.
This applies especially to manufacturing, research and development but also to various other industry players. The University of Malta too is expected to benefit from the spillover effects of this investment.
From the EU’s perspective, this is money well spent. It not only represents a boost to a sector in which Europe needs to do more if it wants to be able to compete globally, especially given the stiff competition from China, but it also enables sustainable growth, green transformation, technological leadership and the creation of thousands of new and well-paid jobs.
According to the European Commission, around 8,700 direct jobs are expected to be created from this scheme and many more indirect ones.
No less than 56 companies, including SMEs and start-ups, and 68 projects, are expected to benefit from the investment.
Enhancing the EU’s resilience and promoting its economic recovery is the shared commitment of all EU leaders.
Malta’s economic vision aims to elevate the workforce to a level that competes with the most advanced economies- Marija Sara Vella Gafà
This investment demonstrates the EU’s commitment to putting its money where its mouth is. It responds to member states’ economic expectations to build back better, together.
Microelectronics production in Europe is pivotal for the continent’s growth. Solutions were needed and this is certainly a step in the right direction. It also ensures economic security and security of supply.
Launching Malta’s economic vision in 2021, Prime Minister Robert Abela outlined five main economic pillars: sustainable growth, high-quality infrastructure, education and employment, environment and high standards of good governance.
These pillars are crucial for Malta to become a centre of excellence, and education and employment are key.
Malta’s economic vision aims to elevate the workforce to a level that competes with the most advanced and attractive economies. To achieve this Malta must do a number of things.
It must frame the future skills landscape and prioritise the closing of skills gaps. It needs to align education curricula with the skills required for tomorrow’s economy. It must also establish Malta as an international education hub of excellence, reskill and upskill the workforce, and attract and retain diverse talent while curbing the brain drain of the best talent.
Malta’s resilient workforce, its unemployment rate at historically low levels, its highly skilled employees and its many competitive advantages give it the necessary ingredients to transform itself into a centre of excellence – not least, but especially, in the technological sector.
Malta’s digital transformation is happening at a fast pace. New and better paid jobs are being created.
Only recently, in an opinion piece in The Sunday Times of Malta, Abela reiterated the government’s commitment towards innovation, research and development and integration (R&D&I).
He described Malta as a hotbed for technological advancement. The robust investment announced by the European Union makes this change possible. And while digital transformation is crucial if Malta and Europe are to remain competitive, it is equally important that no one is left behind.
Therefore, the need to retrain our workforce, as people’s well-being must remain the topmost priority.
Marija Sara Vella Gafà is the Labour mayor of Gudja.