Italy to Strengthen Position in STMicroelectronics Amid Industry Challenges

Italy plans to appoint Marcello Sala, a key economy ministry figure, to STMicroelectronics' supervisory board to gain insight into its strategic decisions. This move comes amid dissatisfaction with the CEO and the company's decision to reduce its workforce as part of a cost-cutting programme.

Italy is set to nominate Marcello Sala, head of an economy ministry department handling state-run firms, to the supervisory board of chipmaker STMicroelectronics, sources reveal. The company, with substantial government ownership, faces market challenges, prompting increased scrutiny over its operations and leadership.

Sala, a close aide to Economy Minister Giancarlo Giorgetti, is instrumental in economic strategy implementation. The proposed changes to the supervisory board, including Sala's potential addition, reflect Italy's desire for a strategic role in STMicroelectronics amid dissatisfaction with current management.

Additionally, Italy is focused on the company's workforce reduction plan, estimated to affect over 2,000 jobs. Government officials are scheduled to meet with STMicroelectronics representatives to address these concerns, emphasizing the importance of this industry sector to the Italian economy.

(With inputs from agencies.)