According to Reuters, STMicroelectronics expects its factories to run at full steam well into 2023 as backlog is filled by the auto and smartphone industries, prompting it to raise its 2022 outlook and build new production lines.
"It's the result of 30 years of globalization, and we're becoming aware that we may need to rebalance things a little more," said STMicroelectronics CEO Jean-Marc Chery. Referring to the upcoming EU chip bill, under which direct aid to chip manufacturing would be allowed.
In terms of production plans for the next 18 to 24 months, new orders were surpassing the group's manufacturing capacity through 2023, Jean-Marc Chery said.
In addition, inflation in energy, transportation and commodity prices prompted ST to raise prices.
It forecast third-quarter net income of $4.24 billion, beating expectations of $3.81 billion.
All Comments (0)