LONDON – Europe's leading chipmaker STMicroelectronics NV plans to invest between $1.1 billion and $1.5 billion on capital expenditure in 2011, between a 6 and 45 percent increase year-on-year.
The investment money is required to support revenue growth faster than the served market dynamic, ST said as it announced its financial results for the fourth quarter and year ended Dec. 31, 2010. In particular ST is planning to invest for the manufacture of MEMS, automotive ICs and the U8500 smartphone platform of its subsidiary ST-Ericsson. ST said the final amount would be modulated by ST's revenue growth in 2011.
Capital expenditures were $423 million during the fourth quarter of 2010 compared to $298 million in the prior quarter. For the 2010 full year period, capital expenditures totaled $1,034 million.
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