STMicro puts all chips on allocation

STMicroelectronics has put all chips on allocation after being caught with its pants down over rocketing demand. CEO Pasquale Pistorio was forced to admit that only preferred customers were getting semiconductor supplies, Electronics Weekly reported. When quizzed on chip shortages, he replied: "The question should be ‘Do you have any products that are not on allocation’ and the answer is ‘no’. "The demand is exceeding our ability to supply. We are giving priority to our strategic partners and our top 30 customers." Pistorio added that current demand was the most explosive he had ever seen. However, he claimed that his company was still ahead of the competition. "We started to commit major capital expenditures in April/May last year. The programme is going well, but with some anxiety because we are falling behind demand. "We have more capacity than our competitors but not enough to respond to market demand," he said. Pistorio added that STMicro was ramping up production in its four wafer fabs – aiming to reach 1,000 wafers a week at its plants in Agrate and Rousset by the end of Q2. Last week the company reported a 51 per cent jump in pre-tax profit for the fourth quarter. Earnings rose to $184 million for the three months ended December 31, compared to $122 million for the previous year. This was on sales of $1.5 billion, up from $1.3 billion.® Related stories STMicro buys flat-screen chip firm STMicro sees 33 per cent profit jump