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France' STMicro sees no reason to take part in EU chip alliance

Credit: REUTERS/Thomas White

Franco-Italian chipmaker STMicroelectronics sees no reason to join a potential European Union semiconductors alliance, its chief executive said on Tuesday, as the European Commission is seeking to boost Europe's independence in microchips.

PARIS, May 4 (Reuters) - Franco-Italian chipmaker STMicroelectronics STM.BN sees no reason to join a potential European Union semiconductors alliance, its chief executive said on Tuesday, as the European Commission is seeking to boost Europe's independence in microchips.

CEO Jean-Marc Chéry told BFM Business that the Commission's initiative is a positive development but added that his firm had no interest in taking part.

Chéry said he expects the chip shortage is not about to end. "The imbalance between demand and capacity is such that this will last at least a year," he said.

STMicro produces a wide range of chips, from low-margin microcontrollers to more sophisticated sensors used in smartphones and autonomous vehicles.

European industry chief Thierry Breton said last month there are now 22 EU member states joining forces in a new alliance to support the local production and development of semiconductors to reduce the bloc's reliance from foreign suppliers.

The European Commission's ambition is to double Europe's market share in global chips and semiconductor production from 10% to 20% by 2030.

(Reporting by Geert De Clercq Editing by Bill Berkrot)

((geert.declercq@tr.com; +33 1 4949 5343; Reuters Messaging: Twitter: @gvdeclercq))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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