French chipmaker STMicroelectronics said on Thursday its 2020 net profit rose 7.2 per cent to $1.1 billion (€0.9bn), bolstered by increasing demand across the industry, especially from the vehicle sector.

Sales were up 6.9 per cent at $10.2 billion, it said, noting it had a much stronger-than-expected fourth quarter.

“Programmes launched with our clients in personal electronics, plus the continued acceleration in demand, notably in the automobile sector and micro-controllers, were the main factors behind these results,” company head Jean-Marc Chery said in a statement.

For the first three months of this year, STMicroelectronics said it expected sales to be up 31.2 per cent compared with first quarter 2020, while the operating profit margin would be higher at 38.5 per cent, up from 37.1 per cent.

For the first three months of this year, STMicroelectronics said it expected sales to be up 31.2% compared with first quarter 2020

STMicroelectronics  said it expected to increase capital investment to $1.8-2.0 billion this year from just under $1.3 billion last year.

The company’s board also announced that Chery would serve another three-year term at the helm.