March 14, 2024 — According to reports, the Italian government, which holds a stake in chipmaker STMicroelectronics, has asked the company to provide a larger share of investment because it believes that investment by STMicroelectronics is more beneficial to France.
With a market capitalization of over €40 billion, STMicroelectronics is one of the few European companies of global importance in the strategic semiconductor business. According to a company filing, the Italian and French governments each hold 50% of a holding company through the Rome Ministry of Finance and French public bank Bpifrance SA, which itself owns 27.5% of STMicroelectronics.
According to people familiar with the matter, Italy is dissatisfied with STMicroelectronics CEO Jean-Marc Chery’s recent decision to change the company’s structure from three main business units to two business units. The axed automotive division was led largely by Italians, including executive Marco Monti, who later left the company.
A spokesman for STMicroelectronics said the company was aware of recent media speculation about its leadership and that its board had not taken further action on the issue since proposing the reappointment of Jean-Marc Chery last September. The spokesperson further stated that STMicroelectronics’ manufacturing focus is on increasing 300mm chip production capacity in France and Italy, as well as wide-bandgap semiconductor silicon carbide production capacity at the core factory in Catania, Italy.