STMicroelectronics responds to insider trading allegations
On Thursday, STMicroelectronics' supervisory board firmly refuted allegations of insider trading involving two members of the European semiconductor manufacturer's management board. The statement follows accusations made the day before by Italy’s Economy Minister, Giancarlo Giorgetti, who claimed that members of STMicro’s management sold shares just prior to releasing disappointing financial results.
"Accusations on the personal transactions made by the 2 members of the Company’s Managing Board on the eve of earnings releases are false," the supervisory board said in an official statement. "Stock sales done during the Company’s blackout period were made by the Company’s stock plan administrator, through an automatic procedure, to abide by Swiss tax rules for the Managing Board members and were legal and compliant with Company policy."
Addressing an ongoing class action lawsuit, the Supervisory Board said it had reviewed the processes involved and believes the Company has a strong defence against the allegations.
In the same statement, the board says that it unanimously approved a company-wide program aimed at reshaping STMicro’s manufacturing footprint. The initiative, which was publicly disclosed in October of last year and again in January, focuses on accelerating wafer-fab capacity to 300mm silicon and 200mm silicon carbide. The company views this strategy as critical to boosting its long-term competitiveness.
Minister Giorgetti also expressed opposition to STMicro CEO Jean-Marc Chery. The Italian and French governments jointly hold a 27.5% stake in the chipmaker through a holding company. Giorgetti said their stance "reflects the behaviour of management itself, which sold STM shares it held the day before reporting the negative results," according to a Reuters report.
Despite the criticism, the supervisory board reiterated its support for CEO Jean-Marc Chery, CFO Lorenzo Grandi, and the rest of the leadership team. It emphasised their ability to "execute the transformation during challenging times for the semiconductor industry."