ST Tragedy Turns To Farce
The rift between STMicroelectronics and the EC was exposed yesterday with remarks by ST CEO Carlo Bozotti to Le Monde which were widely interpreted as meaning that he wanted to see more of ST’s manufacturing done in Asia and less in Europe.
This happened just as ST is waiting for a Euros 600 million payment from the French government to help make ST more competitive in its European manufacturing.
EC vp Neelie Kroes’ 10/100/20 plan envisages Europe upping its world market share from around 6% to 20%.
However ST has cut investment in its Rousset manufacturing site this year and delayed an extension to its Crolles manufacturing site.
Later on in the day, Le Monde added to its story without changing the original quote from Bozotti.
It is said that Kroes phoned Bozotti following the original Le Monde story.
An ST PR tells me: “Never indeed did Carlo Bozotti mention an alleged “shift to Asia” for manufacturing during the course of the day.”
Bozotti’s public utterances are frequently gnomic. He talks in a way best described as affable incoherency.
Bozotti’s contract as CEO expires at ST’s AGM this year. Last year it held its AGM in June.
Tags: neelie kroes, stmicroelectronics