PARIS (Reuters) – Franco-Italian chipmaker STMicroelectronics sees no reason to join a possible European Union semiconductor alliance, its chief executive said on Tuesday, as the European Commission seeks to strengthen independence of Europe in terms of microchips.
CEO Jean-Marc Chéry told BFM Business that the Commission’s initiative was a positive development, but added that his company had no interest in participating.
Chéry said he expects the chip shortage will not end. “The imbalance between demand and capacity is such that it 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 that 22 EU member states are now joining forces in a new alliance to support local production and semiconductor development to reduce dependence on the block vis-à-vis foreign suppliers.
The ambition of the European Commission is to double Europe’s market share in the global production of chips and semiconductors from 10% to 20% by 2030.