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No end to global chip shortage before H1 2023, STMicro CEO says

By Reuters

By Mathieu Rosemain

PARIS -The global chip shortage that is hindering production forecasts of giant companies like Apple and Volkswagen is here to stay until the first half of 2023, the chief executive of STMicroelectronics said on Thursday.

“Things will improve in 2022 gradually, but we will return to a normal situation… not before the first half of 2023,” Jean-Marc Chery in an interview

By “normal situation”, Chery said he meant regular chip inventory levels and average delays to replenish components of about three months.

The chip shortage, which stems from a boom in demand from a wide range of industries, is stimulating prices, said Chery, who has led the Franco-Italian chipmaker since 2018.

The average price of STMicro’s chips has increased by 5% in 2021 from a year ago, he said.

The Geneva-based group will only be able to meet 70% of total customer demand this year, Chery said. That level will be brought to 85-90% next year by investing in production capacity, he added.

Earlier on Thursday, STMicro raised its full-year sales and investment outlook as surging demand from car and phone makers boosted second-quarter profits.