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STMicro plans to invest up to $3.6 billion in 2022 to meet chip demand -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This logo can be seen on STMicroelectronics’ factory at Plan-les-Oautes (near Geneva), Switzerland, 6/12/2016. REUTERS/Denis Balibouse/File Photograph

PARIS, (Reuters) – Franco Italian chipmaker STMicroelectronics stated it plans to invest $3.6 billion and create a new manufacturing line in Italy to satisfy high demand for its semiconductors.

Based in Geneva, the company anticipates that full-year revenues will be between $14.8 billion and $15.3 billion by 2022, up from $12.8 billion last fiscal year.

Fourth-quarter earnings per share amounted to $0.82, beating ​Refinitiv’s mean analyst estimate of 69 cents per share. STMicro expects that first quarter sales will be approximately $3.5 billion. This is a decrease of 1.6% compared to the prior quarter, and a gross margin of around 45%.

This story corrects the first quarter guidance at paragraph 3.

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