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By Eric Auchard and Mathieu Rosemain
FRANKFURT/PARIS, May 11 (Reuters) - STMicroelectronics expects 2017 revenue to grow by between 12.5 and 15.5 percent from last year to around $8 billion, Chief Financial Officer Carlo Ferro said on Thursday.
Europe’s second-biggest chipmaker has been benefiting from growing demand for sensors for smartphones, cars, and the devices related to the burgeoning so-called “Internet of Things” (IoT) sector of internet-connected machinery and household devices that are able to collect and exchange data using embedded sensors.
Speaking to investors at the semiconductor maker’s annual capital markets day in London, Ferro also said the company was making steady progress in reaching its long-promised, often-delayed target of achieving 10 percent operating margins.
“We wanted to share with you our determination to meet and to beat in the second half of this year that target,” said Ferro
The chipmaker is also considering a possible increase in its initially planned investments of $1.1 billion for 2017 on the back of higher demand in the second-half and beyond, it said in its presentation.
STMicro has cut jobs and reorganised itself last year in an attempt to recover from an unsuccessful venture with mobile telecoms equipment maker Ericsson and to counter margin pressure in an ever-more competitive chip market.
It has extended the contract of its long-time CEO Carlo Bozotti by a year, and lined up its operations chief Jean-Marc Chery to succeed him, seeking to end a battle over succession between France and Italy, the company’s controlling shareholders.
Shares were little changed after STMicro’s financial announcements, down 0.58 percent at 0940 GMT. (Reporting by Eric Auchard in Frankfurt and Mathieu Rosemain in Paris; Editing by Sudip Kar-Gupta)