STMicro to invest US$2b to deal with chip supply crisis

FILE PHOTO: A logo is pictured on the factory of STMicroelectronics in Plan-les-Oautes near Geneva, Switzerland, December 6, 2016. REUTERS/Denis Balibouse/File photo

FRENCH-Italian chipmaker STMicroelectronics NV is ramping up spending on new semiconductor capacity after a supply chain breakdown disrupted the automotive industry and piled pressure on the company to boost output.

The industry has been struggling to meet demand for chips powerful enough to run the latest generation of smartphones and manage an increasingly sophisticated array of functions in cars, after the pandemic and geopolitical tensions disrupted supply chains.