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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.
Chipmakers face the risk of investing in new production that could end up being underused if customers stop stockpiling. ST Chief Executive Officer Jean-Marc Chery said all of the company’s foundries are fully booked and it’s starting to see shortages of some materials. ....

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The U.S.-Japan Semiconductor Agreement: Keeping Up the ManagedTrade Agenda


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INTRODUCTION
At the insistence of the United States, in 1986 Japan agreed to
limit its exports of semiconductors, mainly the dynamic random
access memory (DRAM) chips, to America. These chips are used in
high- tech consumer electronics equipment like computers and video
cassette recorders. The agreement expires this July 1, and the Bush
Administration thus soon must decide whether to renew it. Doing so
would make Washington a hypocrite in its free trade efforts to open
markets abroad for American products. The 1986 chip agreement,
after all, restricts trade, ostensibly to help some American
segments of the semiconductor industry. The agreement in fact has ....

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