STMicroelectronics, a major MCU, and power semiconductor chip manufacturer, recently issued a price increase letter to distributors again, announcing that it will raise the prices of all product lines again in the second quarter of 2022, including existing backlog products.
In the context of the shortage of MCU and power semiconductor chips, STMicroelectronics has made a lot of money. According to the 2021 annual performance report released by STMicroelectronics, the operating income of STMicroelectronics in 2021 will be 12.761 billion US dollars, a year-on-year increase of 24.9%.
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Moreover, the net profit will be 2.000 billion US dollars, a year-on-year increase of 80.8%, the gross profit margin will be 41.7%, and the net profit margin will be 41.7%. R&D expenses accounted for 13.5% of operating income.
Furthermore, STMicroelectronics stated that full-year 2021 net revenue growth of 24.9% reflects strong performance in all end markets we address and our participating customer programs throughout the year; gross margin increased from 460 basis points to 41.7%, mainly due to manufacturing efficiency and driven by loading improvements, favorable pricing, and product mix, partially offset by negative currency effects (net of hedging).
Besides, operating expenses and R&D expenses increased 14.6%, primarily due to higher labor costs and negative currency effects; net profit growth was primarily driven by revenue The combined impact of the increase and improved gross margin was partially offset by higher operating expenses and lower levels of public funding.
STMicroelectronics expects operating income in the first quarter of 2022 to be approximately $3.5 billion, a year-on-year increase of approximately 16.1%, and a gross profit margin is expected to be approximately 45.0%.
Meanwhile, STMicroelectronics said it plans to invest approximately $3.4 billion to $3.6 billion in capital expenditures in 2022 to further increase our production capacity and support our strategic initiatives, including the expansion of our new 300mm fab in Agrat, Italy. The first industrialized production line.
