By Mauro Orru

STMicroelectronics NV said Thursday that net profit and revenue for the first quarter increased as demand for chips remains high amid a global shortage.

The European chip maker said first-quarter net profit rose to $364 million from $192 million in the first quarter of 2020.

Quarterly net revenue climbed to $3.02 billion from $2.23 billion.

Gross profit for the quarter rose to $1.18 billion from $846 million with a gross margin of 39.0%, while operating income increased to $440 million from $231 million with an operating margin of 14.6%.

STMicroelectronics had expected net revenue of $2.93 billion at the midpoint, with gross margin at about 38.5%.

For the second quarter, the company expects net revenue of $2.9 billion at the midpoint, with a gross margin of about 39.5%.

Capex for 2021 should amount to around $2 billion, it said.

"We will drive the company based on a plan for FY21 revenues of $12.1 billion, plus or minus $150 million, a year-over-year increase of 18.4% at the midpoint. This growth is expected to be driven by strong dynamics in all end markets we address and our engaged customer programs," Chief Executive Jean-Marc Chery said.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

April 29, 2021 01:31 ET (05:31 GMT)