Geneva, Switzerland – April 10, 2025 – The supervisory board of STMicroelectronics, a leading Franco-Italian semiconductor giant, has issued a resolute vote of confidence in Chief Executive Officer Jean-Marc Chery and his management team, just hours after the Italian government announced its withdrawal of support amid a deepening corporate governance rift. The board’s statement, released early Thursday, comes as a direct counter to escalating tensions with Rome, which has criticized Chery’s leadership during a challenging period for the chipmaking industry.
The Italian government, holding a 27.5% stake alongside France through a joint holding company, signaled its discontent on Wednesday, with Finance Minister Giancarlo Giorgetti accusing STMicro’s management of “poor performance” and alleging insider trading after shares were sold before a dismal earnings report. Italy’s move to oppose Chery follows the company’s rejection of Rome’s nominee, Marcello Sala, to its supervisory board—a decision Giorgetti branded “incomprehensible and unacceptable.” The snub has fueled a broader clash over the company’s direction, with Italy pushing for greater influence as STMicro grapples with a 28% revenue drop forecast for the first quarter and looming job cuts.
In a concise but firm rebuttal, STMicroelectronics’ supervisory board expressed “renewed support” for Chery, Chief Financial Officer Lorenzo Grandi, and the broader management team, praising their ability to navigate “challenging times for the semiconductor industry.” The board also addressed Italy’s insider trading claims, clarifying that stock sales during a blackout period were executed automatically by the company’s stock plan administrator, not management, dismissing the allegations as unfounded.
The standoff underscores a simmering Franco-Italian divide within STMicro, a strategic asset for both nations with a workforce of 50,000 and key clients like Tesla and Apple. France has maintained its backing of Chery, with sources indicating that French Finance Minister Eric Lombard reaffirmed support during talks with Giorgetti at a G20 summit in February. The supervisory board, chaired by Bpifrance CEO Nicolas Dufourcq, appears aligned with Paris, setting the stage for a potential showdown as Italy threatens to leverage its veto powers over board decisions.
The timing is critical. STMicro faces a sustained downturn in its core automotive and industrial markets, exacerbated by a slump in electric vehicle demand. A $300 million cost-cutting plan, including possible layoffs of up to 6% of its workforce—potentially over 2,000 jobs in Italy alone—has heightened Rome’s scrutiny. Italian unions and officials, summoned by Giorgetti and Industry Minister Adolfo Urso last week, are pressing for assurances that cuts won’t disproportionately hit Italian facilities.
Analysts see the board’s defiance as a bid to stabilize STMicro’s leadership amid uncertainty. “This is a clear signal that the supervisory board, with French backing, won’t bend to Italian pressure,” said tech analyst Marco Rossi. “But it risks escalating tensions at a time when unity is needed to weather the market storm.” Shares of STMicro, traded on Euronext Paris and the NYSE, rose 3.5% in premarket trading Thursday, reflecting investor confidence in the board’s stance, though the long-term outlook remains murky.
As the saga unfolds, STMicro’s ability to balance national interests with operational demands will be tested. For now, Chery retains the board’s trust, but with Italy digging in and France holding firm, the chipmaker’s governance crisis is far from resolved.
