STMicroelectronics Denies Insider Trading Allegations from Italy's Minister

STMicroelectronics has denied allegations of insider trading made by Italy's Economy Minister Giancarlo Giorgetti, who claimed that management sold shares a day before announcing negative results. The company clarified that these stock sales were executed automatically during a blackout period as part of an established stock plan. Giorgetti also indicated that the Italian government does not support CEO Jean-Marc Chery, who has been at the helm for seven years. Despite the controversy, STMicro expressed its commitment to ongoing investments in Italy, including plans to double production capacity at its Agrate facility by 2027. The supervisory board's meeting highlighted the governance imbalance between the Italian and French stakeholders, who collectively hold a 27.5% stake in the company. STMicro, like other European chipmakers, is facing challenges in the automotive and industrial markets, which have impacted its performance.